Mt. Gox, once the largest Bitcoin exchange before its collapse in 2014, has been slowly releasing its Bitcoin holdings as part of a long-awaited rehabilitation process. As per data from Spot on chain, the latest move involved transferring 11,501.4 BTC, valued at around $1 billion.
This transfer included 10,608 BTC worth $929.7M which was sent to a new wallet. 893.4 BTC worth $78.3M was sent to a warm wallet, which is often used for transactions and could be moved out soon.
This follows a previous transfer where 332 BTC ($25.5M) was deposited into the Bitstamp exchange. Given the size of these transfers, there is speculation that the BTC in the warm wallet will likely be moved or sold soon, which could impact the market.
Notably, this is the third significant transfer of funds by the exchange in the past four weeks, which follows Mt. Gox’s earlier moves, where it shuffled a total of 12,000 Bitcoin, worth over $1 billion, on March 6, and another 11,833 Bitcoin on March 11.
So far, the latest coin transfers haven’t affected the spot price, unlike earlier this month. This is a big contrast to mid-last year when Mt. Gox’s coin transfers triggered fears of creditor sell-offs, causing major price swings.
Many think that the large transfers from Mt. Gox could mean that creditor payouts are coming soon. Creditors have the option to receive their payouts in Bitcoin. A Reddit poll in July 2024, after the exchange made its first payout, showed that most creditors weren’t in a hurry to sell their Bitcoin. This suggests that many are holding onto their payouts rather than cashing out immediately.
Mt. Gox began repaying its creditors in July 2024 using its holdings of 142,000 BTC ($11 billion), 143,000 Bitcoin Cash ($47 million), and 69 billion yen ($469 million). Some creditors received payments through Kraken and Bitstamp exchanges. The exchange still holds approximately 35,000 Bitcoin, valued at $3.1 billion, across wallets under its control.
However, last October, the exchange pushed back its full creditor payout deadline to October 31, 2025, due to ongoing verification and processing for claimants.
Credit: Source link
