Bitcoin Falls to $65K as Mt. Gox Transfers $2.8 Billion BTC to External Wallet

Former crypto exchange Mt. Gox has continued moving Bitcoin in fulfillment of its promise to repay its creditors after the exchange was hacked back in 2014. Today, the defunct exchange has transferred BTC, up to $2.8 billion to several external wallets.

The recent transfer comes shortly after the exchange shifted over $3 billion in Bitcoin to another wallet less than 24 hours ago. Sadly, the substantial BTC movement coincided with a BTC drop in price to the $65k mark. This partially fuels the fear of market participants of the Mt. Gox repayment plan’s impact on the Bitcoin market. Moreover, Kraken announced that it has finished distributing the BTC and BCH to the Mt. Gox creditors.

Mt. Gox Continues Bitcoin Movement

About two hours from press time, Arkham Intelligence reported that the former Japan-based crypto exchange had transferred exactly 37.477k BTC, worth $2.47 billion from its cold wallet to another wallet labeled ’12Gws…k7Tc.’ Before the large transfer, Mt. Gox made two smaller test transfers of $11.33 and $1.42 to the same wallet address.

This type of movement indicates that the wallet might move Bitcoin soon, likely to the exchanges partnered with Mt. Gox for creditor redistribution including Kraken, Bitstamp, SBI VC Trade, Bitbank, and Coincheck

UPDATE: MT. GOX MOVING $2.85B BTC

Mt. Gox moved a total of $2.85B BTC to new wallets this morning in order to distribute 5110 BTC ($340.1M) BTC to 4 separate Bitstamp addresses.

Bitstamp is one of the 5 exchanges that the Mt. Gox Trustee is working with to return funds to Mt.… pic.twitter.com/KsKuxMpvZS

— Arkham (@ArkhamIntel) July 23, 2024

Shortly after, Mt. Gox initiated a second large transfer, this time shifting 5.106k BTC, valued at $335.76 million to another wallet labeled ‘1Mzh…V6HD.’ Notably, about 23 minutes ago, Mt. Gox sent small, likely test transfers, to the Bitstamp exchange. According to the data, $0.36 and $1.33k in BTC were sent from its cold wallet to a Bitsmap exchange address labeled ‘3CgKH.’

Kraken Completes Mt. Gox Creditors Repayment

Meanwhile, Kraken has informed the public that it has finished sending Bitcoin and Bitcoin Cash to the allocated Mt. Gox creditors. The California-based exchange was one of the five exchanges selected by Mt. Gox to partner with for the redistribution of funds to its users.

In a post on X (formerly Twitter), the CEO of Kraken, Dave Ripley expressed that it was a privilege for the Kraken to be selected and be a trusted partner for the redistribution. He said “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty.”

Mt. Gox declared bankruptcy in 2014 after it was hacked for hundreds of thousands of Bitcoins. At the time, the price of one BTC was $600, hence the total value of stolen funds was about $400 million. However, compared to today’s price, the value of the stolen funds is now worth about $45 billion. According to Arkham Intelligence data, the Mt. Gox Rehabilitation still holds 90.344k BTC (worth $5.95 billion) to be redistributed.

At the time of writing, the price of the flagship cryptocurrency Bitcoin traded at $65,880 representing a 0.8% decline from the last day.

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