Mt. Gox Moves 500 BTC Worth $35M Amid Ongoing Repayment Delays
Mt. Gox moved 500 BTC (worth $35.04m) from its cold wallet to unknown addresses on November 1. The transfer was detected by Arkham Intelligence at 00:42 UTC and the wallet address started with “12cTj”. No updates on creditor compensation have been made by the Mt. Gox Rehabilitation Trustee since.
Mt. Gox cold wallet still has 44,900 BTC (worth $3.11b) and after this transfer two more transactions were made, 31.78 BTC and 468.24 BTC. This is the first big movement from Mt. Gox wallets in the last month and it’s raising concerns about market impact from future large liquidations.
MT. GOX MOVES $35M BTC—WHAT’S THE VIBE?
So, Mt. Gox is back in the spotlight, moving 500 BTC worth around $35 million to some unknown addresses.
This comes on the heels of their last big transfer back in August as they continue sorting out their repayment drama, which is now… pic.twitter.com/Z0C6HdkvRq
— IBC Group Official (@ibcgroupio) November 1, 2024
Previous Mt. Gox movements have been causing market concerns
Mt. Gox went down in 2014 and has been repaying creditors through sporadic Bitcoin distributions. In August it moved over $855m in Bitcoin to unknown addresses, including $784.2m to an unknown wallet. In July it moved $2.5b in Bitcoin, 59,000 of which (out of 142,000) was distributed to creditors through Kraken and Bitstamp according to Glassnode.
The periodic movement of Bitcoin from Mt. Gox cold storage has been causing market instability. Although these are part of the repayment process, the timing of these movements always causes short term volatility in the spot price of Bitcoin. With so much Bitcoin still under Mt. Gox’s control, traders are on edge for more liquidations.
Longer repayment deadline puts pressure on Bitcoin prices
The Mt. Gox Rehabilitation Trustee recently extended the deadline for the final distribution of remaining assets to creditors to October 31, 2025. This is to give creditors who haven’t completed the necessary procedures more time to do so. This means more time for the remaining Bitcoin to get back to its rightful owners.
MT. GOX MOVES $35 MILLION IN BTC DURING REPAYMENT PROCESS
Bitcoin linked to the defunct Mt. Gox exchange has seen a major transfer of 500 BTC, worth about $35 million, to unmarked addresses today.
This follows an earlier transfer of 12,000 coins in August, as the exchange… pic.twitter.com/0fkZkfJtXM
— Crypto Town Hall (@Crypto_TownHall) November 1, 2024
The uncertainty around the timeline and amount of future liquidations is causing Bitcoin’s price corrections. After hitting 90 days high of $73,295 on October 30, Bitcoin dropped 5.5% to $69,000. This shows how much Mt. Gox’s repayment activities impact the market, big Bitcoin movements can create liquidity shocks and amplify volatility.
Summary:
500 BTC ($35m) moved from Mt. Gox to unknown wallets.
Big BTC movements by Mt. Gox have been causing market moves.
Repayment deadline extended to October 2025. So much Bitcoin still under Mt. Gox. Price may move.
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