Mt.Gox, the Japanese cryptocurrency exchange that collapsed in 2014, moved 42,587 bitcoins worth an estimated $2.85 billion to an unknown wallet on Tuesday. The decision came a day after the exchange conducted test transactions while Mt.Gox was preparing to pay off creditors. Following the move, the price of bitcoin fell below $66,300, down 1.84%.
Mt.Gox, the now-defunct cryptocurrency exchange, earlier this month announced on its website that it had begun repaying “some” creditors, adding that others would have to “wait a bit,” but has since removed the post.
The repayment process, facilitated through the Bitstamp exchange , involves the distribution of Bitcoin and Bitcoin Cash worth more than $9.4 billion to some 127,000 creditors.
So far, cryptocurrency exchange Kraken has confirmed receipt of funds from Mt.Gox Trustee, marking a significant milestone in the long-awaited creditor distribution process. Kraken will begin distributing funds later this month and in early August.
In an email sent to interested users, Kraken confirmed the start of the distribution process. The email said: “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox trustee.”
Mt. Gox’s collapse resulted in years of legal proceedings
The repayment comes a decade after the collapse of the exchange. Its collapse sparked years of legal proceedings and efforts to recover lost property.
In 2018, some 200,000 Bitcoins were recovered, kicking off a lengthy rehabilitation process under the supervision of a court-appointed receiver. Since then, creditors have been waiting for compensation, and numerous delays have hampered the process.
This latest distribution aims to compensate users who lost funds during the collapse. The exact details of the repayment plan, including the proportion of assets to be distributed and the implementation schedule, are being closely watched by the crypto community.
Last month, Mt.Gox moved $2.7 billion worth of Bitcoin to a new wallet address. It was the exchange’s first significant transaction after several smaller test deals.
