Key Points
- Mt. Gox transferred 37,477 BTC worth around $2.5 billion to an unknown wallet today.
- Until now, 40% of creditor repayments have been distributed.
The defunct crypto exchange Mt. Gox continues its Bitcoin transfers in its creditor repayment efforts. According to the latest reports coming from blockchain analytics firm Arkham Intelligence, Mt. Gox has transferred 37,477 BTC worth about $2.5 billion at current prices.
Official data revealed that the transfer was made on July 24, at 4:53 am UTC.
5,106 BTC of the total sum mentioned above was sent to a separate Mt. Gox cold wallet.
The exchange’s move of funds comes less than 24 hours after it transferred $2.8 billion in BTC to wallets yesterday. According to official data, $340 million of the sum shifted the other day was sent to four wallets that are reportedly associated with Bitstamp.
Bitstamp is among the crypto exchanges working with Mt. Gox to return funds to affected creditors.
40% of Bitcoin Funds, Distributed to Creditors
Until now, around 40% of the Bitcoin funds owed to creditors have been distributed, data from CryptoQuant reveals.
Mt. Gox owed around $9 billion to approximately 127,000 creditors, and after the 40% fund distribution, the rest of $5.6 billion is yet to be returned.
Mt. Gox creditors have been waiting for their funds for over 10 years. Back in 2014, the exchange collapsed following a security exploit. Then, the exchange suspended withdrawals, halted trading, and revealed the massive hack, followed by a bankruptcy filing.
The extended deadline for repayments is currently set for October 31, 2024.
Mt. Gox FUD Is Overestimated
Despite the fact that some see the repayment process as a trigger for massive sell-offs that could potentially affect Bitcoin’s price significantly, analysts at CryptoQuant have recently suggested that the FUD is overestimated.
On July 16, CryptoQuant founder, Ki Young Ju said in a post on X that Mt. Gox’s moves’ significance and potential effects on BTC’s price are overblown. He explained that market cap outpaces realized cap growth, showing strong demand.
He also noted that since 2023, $224 billion in Bitcoin has been sold, yet the price is up 350%.
Other market commentators believe that much of the Mt Gox potential impact on Bitcoin is already priced in, and funds will be repaid in multiple phases which will not affect the price significantly.
The funds that are paid back directly to individual creditors will not hit the market all at once. Galaxy Digital’s head of research Alex Thorne said that it’s likely that many Mt. Gox creditors are more “diamond-handed” than some believe.
Regarding Bitcoin‘s price today, at the moment of writing this article, BTC is trading above $66,000.
