- Defunct crypto exchange Mt. Gox has recently moved significant amounts of Bitcoin.
- Mt. Gox plans to execute a full creditor settlement later this year.
- The exchange’s renewed actions are igniting hopes among creditors.
The collapse of the once-thriving crypto exchange Mt.Gox was one of the most scandalous chapters in the crypto industry, marked by the loss of over 850,000 bitcoins and a bankruptcy that left many investors out of pocket. However, over a decade after the collapse, the exchange is set to finally compensate victims, instilling hope among creditors with recent positive actions.
Mt. Gox Bitcoin Payout Funds Ready?
On Tuesday, May 28, 2024, a cold wallet linked to Mt.Gox moved 141,686 Bitcoin to an unmarked address, worth approximately $9.44 billion at press time, marking the first asset movement by the exchange in over five years.
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The transfer occurred in six parts of varying amounts, beginning with the transfer of 12,240 BTC. These transactions took place over a five-hour period, culminating in a final transfer of 31,138 BTC.
The weight of the asset movements triggered a decline in BTC’s price, caused by fear among investors that a sell off was imminent. The token fell by a slight 2% amid the transfers to $67,500. Addressing the concerns, in a statement, Mt.Gox clarified that the BTC movements are part of the ongoing actions by the rehabilitation trustee in the creditor settlement process.
“The Rehabilitation Trustee is currently managing bitcoin and bitcoin cash in a secure manner.As the Rehabilitation Trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made,” the statement read.
While Mt. Gox emphasized that it has not initiated sales or repayments yet, its renewed actions have spurred optimism among creditors.
Mt. Gox Creditors’ Decade of Wait
With its position as one of the biggest exchanges in crypto’s early years, the 2011 Mt. Gox bitcoin hack resulted in extensive losses for the exchange and over 127,000 creditors. Shortly after, in 2014, the exchange went radio silent following its bankruptcy filing, throwing those impacted into confusion about what became of their fate.
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However, in January 2024, hope emerged as Mt. Gox administrators took a step towards resolving final repayments. Some of the exchange’s users reported receiving requests to initiate account ownership verification. This also included the authentication of the Mt. Gox ownership of accounts specified as payment addresses for Bitcoin (BTC) and Bitcoin Cash (BCH) for the distribution of funds.
The set date for settlement is October 31, 2024, when all verified creditors are expected to receive compensation. Despite the recent positive developments, it remains to be seen whether Mt.Gox can fully deliver on its promises.
On the Flipside
- The price of Bitcoin at the time of Mt. Go’s crash was around $800, marking an 8,435.25% increase from its trading price of $68,282 at press time.
- Mt. Gox’s BTC balance sits significantly below the purported 850,000 stolen tokens.
- In December 2023, some users reported receiving payments from Mt. Gox administrators, with some reporting being paid twice.
Why This Matters
Mt. Gox’s movement of Bitcoin further boosts creditor hopes for an imminent repayment. A successful settlement, as promised, could see many of the exchange’s users finally regain some of their funds and achieve resolution.
Read more about this expert’s analysis that the Mt.Gox creditor settlement won’t impact the market:
Mt. Gox Payouts Won’t Trigger Bitcoin Sell-Off: Samson Mow
Discover more about the aftermath of the Normie hack and hacker refund demands:
Normie Hacker Doubles Down on Refund Conditions Post 99% Crash
