Mt. Gox Refutes $10B BTC & BCH Selloff Rumors Amid Repayment Plan

• Mt. Gox, a crypto exchange that collapsed in 2014, denied claims of selling $10 billion worth of Bitcoin and Bitcoin Cash reserves for making repayment to creditors.
• However, the defunct exchange denied the selloff claims and affirmed that the BTC and BCH reserves were safe.
• On the flip side, Arkham Intelligence reported that addresses related to Mt. Gox transferred over $9 billion of BTC to new wallets.

Mt. Gox denies $10 billion Bitcoin and Bitcoin Cash selloff claims amidst ongoing rehabilitation process.

Mt. Gox Dismisses Claims Of Bitcoin Selloff

Mt. Gox, once the world’s largest Bitcoin exchange before its collapse in 2014, has been at the center of a lengthy rehabilitation process overseen by Nobuaki Kobayashi, the appointed Rehabilitation Trustee. In a letter dated May 28, 2024, the bankrupt exchange addressed the growing concerns, stating, “Under the Rehabilitation Plan, the Rehabilitation Trustee is preparing to make repayment for the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated.” The letter further clarified that the repayment process offers two options for rehabilitation creditors.

These options include “either (i) repayment by way of Designated Cryptocurrency Exchange, etc. receiving bitcoin and bitcoin cash on behalf of the rehabilitation creditors, or (ii) repayment with proceeds from the sale of bitcoin and bitcoin cash.”

Moreover, the rehabilitation trustee acknowledged the heightened anxiety surrounding the management of these assets. The document added, “Recently, the Rehabilitation Trustee has received inquiries/deep concerns about the status of managing bitcoin and bitcoin cash.”

To dispel rumors, the exchange affirmed, “at this time, the Rehabilitation Trustee has neither made repayment in (i) above by way of Designated Cryptocurrency Exchange, etc. nor sold bitcoin and bitcoin cash to make repayment in (ii) above. The Rehabilitation Trustee is currently managing bitcoin and bitcoin cash in a secure manner.”

Reports Of BTC & BCH Sale Worth Over $10 Billion

The denials from Mt. Gox came in response to reports by Arkham Intelligence and Wu Blockchain that revealed substantial movements of Bitcoin and Bitcoin Cash. According to Arkham Intelligence, over the past seven hours, 72 different Mt. Gox-linked wallets transferred a staggering 141,686 BTC. The transactions were made in batches of approximately 2,000 BTC each to a newly created wallet identified as 1Jbez.

Moreover, this wallet, which received its first small transaction on May 20, 2024, currently holds nearly half of the attributed Mt. Gox BTC, valued at around $9.36 billion. Furthermore, Arkham Intelligence noted that 1Jbez has already started dispersing BTC, sending 4,000 BTC ($271.8 million) to another new wallet (152w), alongside smaller transfers to wallets 1LsC and 18YB.

In addition, these transactions sparked fears of a potential market selloff, exacerbating concerns within the crypto community. Adding to the intrigue, Wu Blockchain reported that Mt. Gox-related addresses also moved a total of 142,846.22 BCH to an unmarked address. The concerned address now holds approximately $67.9 million in Bitcoin Cash, making it the 11th largest BCH whale address.

Despite these reports, the Mt. Gox Rehabilitation Trustee’s assurances aim to mitigate panic and speculation. The letter emphasized that preparations for repayments are ongoing and urged stakeholders to remain patient. It stated, “As the Rehabilitation Trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made.”

Conclusion

In conclusion, while reports of substantial Bitcoin and Bitcoin Cash transfers from Mt. Gox-linked wallets have stirred the crypto community, the exchange’s Rehabilitation Trustee has firmly denied any selloff activities. The ongoing rehabilitation process and the trustee’s assurances aim to maintain stability and trust among creditors. As the situation develops, stakeholders are advised to remain vigilant and patient, awaiting further updates on the repayment process.