Mt. Gox Users on Edge as $10 Billion BTC Transfer Sparks Concerns

  • Mt. Gox has transferred 42,830 BTC, worth about $2.9 billion, from its cold wallets, according to Arkham Intelligence data.
  • This marks the first major transfer from the defunct bitcoin exchange in five years.
  • Former Mt. Gox CEO Mark Karpeles reassured creditors on social media, stating, “As far as I know, everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening.”

Mt. Gox transfers $10 billion in Bitcoin to unknown wallet, raising questions and concerns among creditors.

Major Transfer from Mt. Gox’s Cold Wallets

On May 28, 2024, Mt. Gox transferred 42,830 BTC, valued at approximately $2.9 billion, from its cold wallets. This significant movement of assets marks the first major transfer from the defunct bitcoin exchange in five years. The assets were moved in multiple transactions to an unknown address by 11:00 am Hong Kong time on Tuesday. Despite this transfer, Mt. Gox still holds roughly $9.42 billion worth of bitcoin in its tracked wallets, according to Arkham Intelligence.

Consolidation of Assets and Trustee’s Statement

In September 2023, the Mt. Gox trustee announced a 12-month extension of the repayment deadline, pushing it to October 31, 2024. Earlier today, $9.8 billion of bitcoin from multiple Mt. Gox-associated wallets was consolidated into a single wallet, causing some concern among creditors. Subsequently, approximately $400 million worth of bitcoin was transferred to several new addresses, leaving the consolidated wallet with around $9.4 billion, which is about half of Mt. Gox’s total bitcoin holdings.

The Mt. Gox Trustee issued a statement explaining the recent transfers. “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 Trustee said. He clarified that creditors could choose to receive repayments in cryptocurrency or fiat money. However, no bitcoin or bitcoin cash has been sold yet for creditors requesting fiat payments.

Reassurances and Future Outlook

The Trustee confirmed that the bitcoin and bitcoin cash are being managed securely and requested patience from creditors as preparations for repayments continue. Former Mt. Gox CEO Mark Karpeles reassured creditors on social media, stating, “As far as I know, everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening.”

The bankruptcy process plans to repay creditors with a mix of fiat currency, bitcoin, and bitcoin cash. While fiat payments have begun, bitcoin and bitcoin cash payments have yet to be distributed. The repayment deadline has been pushed back several times in the past, so the current October 2024 deadline may still be subject to change.

Conclusion

In summary, the recent transfer of $10 billion worth of bitcoin from Mt. Gox’s cold wallets has raised questions and concerns among creditors. The Trustee has assured that these movements are part of the preparation for repayments under the Rehabilitation Plan. As the October 2024 deadline approaches, creditors are advised to remain patient and stay informed about further developments.

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Marisol Navaro
Marisol Navarohttps://en.coinotag.com/
Marisol Navaro is a young 21-year-old writer who is passionate about following in Satoshi's footsteps in the cryptocurrency industry. With a drive to learn and understand the latest trends and developments, Marisol provides fresh insights and perspectives on the world of cryptocurrency.
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