Mt. Gox Preparing to Repay Bitcoin Creditors
YEREVAN (CoinChapter.com) — Mt. Gox is preparing to repay its creditors via the Bitstamp cryptocurrency exchange. Recent on-chain fund movements indicate that this process is nearing execution. Blockchain intelligence firm Arkham Intelligence identified the first test transactions to Bitstamp cold wallets on July 22.
Mt. Gox Conducts $1 Test Transfers to Bitstamp
The Mt. Gox address executed four small test transactions to Bitstamp deposit addresses, transferring $1 each. These transactions were flagged by Arkham Intelligence in a recent post.
Bitstamp is one of five exchanges collaborating with the Mt. Gox Trustee to facilitate these repayments. These preliminary transfers likely represent essential test transactions before the large-scale distribution begins. They indicate that Mt. Gox is preparing and the repayments are imminent.
More than $9.4 billion in Bitcoin is owed to approximately 127,000 Mt. Gox creditors. Many have been waiting over a decade to recover their funds. This impending release has raised concerns among crypto investors about potential sell pressure on Bitcoin’s price.
Mixed Predictions on Post-Repayment Bitcoin Sell-Off
Finance analyst Jacob King predicts that up to 99% of Mt. Gox creditors might sell their Bitcoin as soon as they receive it. In a July 4 post, he noted,
“99% of those on Mt. Gox are going to sell their coins the moment they get it. Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks.”
However, a Reddit poll suggests a different outcome. About 56% of Mt. Gox creditors indicated they intend to hold their Bitcoin, while only 20% plan to sell. This disparity in predictions adds an element of uncertainty to the market’s reaction once repayments commence.
Bitcoin Whales Continue Buying Amid Mt. Gox Repayment Preparations
As of July 17, over 36% of the Bitcoin owed to Mt. Gox creditors had already been distributed. Despite concerns about selling pressure, some large Bitcoin holders, known as whales, continue their buying spree. On July 17, a savvy whale purchased 245 BTC, worth nearly $16 million. This address has only traded Bitcoin twice in the past year, earning over $30 million in profit from these trades.
The Mt. Gox-labelled wallet currently holds over 90,300 BTC, valued at approximately $6.12 billion, according to Arkham Intelligence data. The exact timing for the resumption of repayments remains unclear. However, the recent test transactions suggest that the final preparations are underway for the repayments on Bitstamp.
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