Mt. Gox Moves $6 Billion in Bitcoin During Creditor Repayments

Addresses linked to the bankrupt exchange Mt. Gox have recently transferred 96,396 Bitcoin (BTC), valued at over $6 billion, to three unknown wallets. This substantial movement has ignited fears of a potential market selloff, especially amidst the ongoing creditor repayment process.

According to Arkham Intelligence, these transactions transpired within a span of two hours. The sequence of transfers began with a modest 0.021 BTC sent to an unmarked address after three weeks of inactivity. This initial move likely served as a test before executing larger transactions.

Breakdown of the Transfers

Following the test transaction, the Mt. Gox address proceeded to move substantial amounts:

• First Transfer: At 06:39 UTC, 44,000 BTC and 526 BTC, totaling $2.84 billion, were sent to two separate addresses. The bulk, 44,000 BTC, went to a Mt. Gox cold wallet, while the remaining 526 BTC reached an unidentified address.
• Second Transfer: Shortly after, another 47,229 BTC, worth nearly $3 billion, were sent to another unknown address.
• Third Transfer: This was followed by 48,641 BTC moving to a third unidentified address, completing the total transfer of 96,396 BTC.

Despite selloff worries, these Bitcoins remain in the recipient wallets at the time of reporting.

These transactions occur shortly after the German government liquidated its Bitcoin holdings, which had led to a market slump. On July 5, Bitcoin’s value plummeted to a five-month low of $53,485. However, the market has since rebounded, with BTC recovering by nearly 18% from its low following the end of Germany’s selloff.

Mt. Gox’s recent movements coincide with its ongoing effort to repay creditors. Last month, the exchange announced plans to start repayments in July. By July 5, some creditors confirmed receiving their Bitcoin and Bitcoin Cash (BCH) tokens. These latest transfers might signify further progress in disbursing funds to creditors.

Mt. Gox still retains 138.9 BTC, worth approximately $8.7 billion, signaling more transactions may follow as repayments continue. The market remains cautious, keeping a close watch on potential selloffs from these creditors.