Mt. Gox Moves Nearly 47,229 BTC As Proposed $9 Billion Payout Kicks Off
Multiple reports confirm today that the defunct cryptocurrency exchange Mt. Gox has transferred 47,228 BTC, valued at approximately $2.71 billion, from cold storage to a new wallet. This move is part of the exchange’s long-awaited repayment process to its creditors, marking a pivotal moment in the crypto world.
Mt. Gox, once the world’s largest Bitcoin exchange, handling over 70% of all BTC transactions, went bankrupt in 2014 following a massive hack that resulted in the loss of 740,000 BTC. Since then, creditors have been waiting for their funds to be returned, and this recent transfer is a step towards fulfilling that promise.
According to blockchain analytics firm Arkham Intelligence, the transfer occurred in the wee hours on Friday. The move has sparked a flurry of activity and speculation within the crypto community. Many are concerned about the potential market impact, as the release of such a large amount of Bitcoin could lead to significant selling pressure.
Repayment in Bitcoin and Bitcoin Cash
After nearly a decade of anticipation, the defunct crypto exchange Mt. Gox has finally started repaying its creditors, according to an official announcement.
On July 5, 2024, Mt. Gox began distributing repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) to some of its rehabilitation creditors through designated cryptocurrency exchanges. This move is part of the Rehabilitation Plan, which aims to compensate those who lost their funds when the exchange went under.
The repayment process, which includes 140,000 BTC (worth approximately $7.73 billion), 143,000 BCH (Bitcoin Cash), and Japanese yen, was announced last month. The trustee overseeing the repayments has started distributing assets, and this recent transfer is a clear indication that the process is in full swing.
Willy Chuang, COO of crypto exchange WOO X, commented on the situation, saying, “Mt. Gox moved 47,228 BTC, signaling the start of their repayment process, which has caused some market fear due to the large potential sell-off. However, it’s worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure.”
Nobuaki Kobayashi, the Rehabilitation Trustee, has urged creditors to be patient as the repayments are processed. “We are committed to ensuring that all repayments are made safely and securely,” he stated in a recent update.
Market Reactions and Concerns
The market reaction has been swift. Bitcoin’s price dipped below $54,000, its lowest since late February. This drop led to over $580 million in bullish bets being liquidated, highlighting the volatility and sensitivity of the market to such large-scale movements.
Several analysts have tried to calm nerves by suggesting that the potential selling pressure from the repayments would be limited.
Relax, the market needed an excuse to panic and we've probably bottomed here at $58k.
— ElonTrades (@ElonTrades) July 4, 2024Mt. Gox: 142,000 $BTC
Germany: 46,359 $BTC
Total Remaining to be Sold: 188,359 BTC ($11.32 billion)
Which represents roughly one-third of Bitcoin's single day trading volume. pic.twitter.com/5PXltXHTe8
However, the market remains jittery, with BTC declining 10% in seven days and 22% in four weeks. The intense sell-off has flipped the horizontal support of $56,500, stemming from May lows, into resistance.
As the repayment process continues, the market will likely experience further fluctuations. Traders and investors should stay informed and be prepared for potential volatility. The long-term impact of these repayments on the market remains to be seen, but for now, the focus is on how the market will absorb this significant influx of Bitcoin.
For those affected by the Mt. Gox collapse, this is a long-awaited moment of restitution.
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