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After half a decade, Mt.Gox initiates $7.2 billion bitcoin transfer

A collapsed cryptocurrency exchange is beginning the process of returning funds to affected users, which could have a significant impact on the Bitcoin market.

Date: 2024-05-28 Author: Łukasz Michałek
After half a decade, Mt.Gox initiates $7.2 billion bitcoin transfer

According to data from Arkham Intelligence, defunct cryptocurrency exchange Mt.Gox sent about 107,000 Bitcoins worth about $7.2 billion on Tuesday. These bulk transfers were sent to a single anonymous wallet, ahead of Mt.Gox’s schedule to repay creditors of BTC holdings by October.

According to Arkham, the transactions occurred on May 28 between 1:41 a.m. and 4:46 a.m. UTC. Moreover, most of them cost around 2,000 BTC each. Bitcoin’s price fell slightly to $67,787 after reaching a peak of $70,600 on Monday.

Mt.Gox, which once handled the majority of Bitcoin transactions worldwide, began operations in 2010. However, hackers stole a huge amount of Bitcoin from the exchange in 2011, leading to its bankruptcy in 2014.

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Although some of the bitcoin was later recovered, legal problems in Japan have slowed the process of returning the funds to those who lost them in the hack. Last year, US authorities accused two Russians of conspiring to hack Mt.Gox servers.

Mt.Gox prepares to pay creditors

Mt.Gox is close to completing the process and aims to distribute bitcoin assets to creditors in stages by October 31. This includes initial, intermediate and final lump sum payments. The big question is whether these creditors will sell their Bitcoins immediately, which could cause prices to fall.

Recently, analysts at K33 Research said that Mt.Gox’s sale of Bitcoin could disrupt the market and potentially drive down the price of Bitcoin. According to CryptoQuant , the recent activity in Mt.Gox’s wallets is the first movement since May 2018.

Previously, the defunct platform held some 137,892 Bitcoin, as well as Bitcoin Cash and fiat currency, according to earlier data. Some of the fiat currency has already been returned. Bitcoin Cash fell nearly 5% on Tuesday.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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