Key Points
- $9.8 billion in Bitcoin was consolidated into a single wallet associated with Mt Gox, causing alarm among creditors.
- Former Mt Gox CEO Mark Karpeles reassured creditors that this was part of the distribution process.
Bitcoin Consolidation Causes Concern
In a surprising move, Bitcoin worth $9.8 billion from various wallets linked to Mt Gox was consolidated into a single wallet without any prior notice. This sudden consolidation caused concern among creditors.
The Mt Gox Trustee has now released a statement to clarify the situation. The statement explained that the Trustee is preparing to make repayments for the portion of cryptocurrency rehabilitation claims allocated to cryptocurrency.
Repayment Plans and Trustee’s Assurance
The Trustee further clarified that the Bitcoin and Bitcoin Cash would be distributed to creditors either in the form of cryptocurrency or sold for fiat money, based on the preference of the creditors. They also confirmed that no Bitcoin or Bitcoin Cash has been sold yet for creditors who have chosen to receive their repayment in fiat currency.
The Trustee is currently managing the Bitcoin and Bitcoin Cash securely and is preparing for the repayments. They have asked creditors to be patient until the repayments are made.
According to Arkham data, $9.8 billion of Bitcoin was moved to a single wallet, and then around $400 million worth of Bitcoin was moved out to a few new addresses. The wallet now holds approximately $9.4 billion of Bitcoin, which represents about half of Mt Gox’s entire Bitcoin holdings.
Former CEO’s Statement
Mark Karpeles, the former CEO of Mt Gox, also commented on the matter to reassure creditors. He confirmed that the movement of Bitcoin from Mt Gox wallets was part of the distribution process and that there was no imminent sale of Bitcoin happening.
In September 2023, the Trustee of Mt Gox announced that the repayment deadline was extended by 12 months to October 31, 2024. All payments are expected to be distributed by that date. However, the deadline has been postponed several times in the past, so it may not be final.
The bankruptcy process is paying out creditors in a mix of fiat currency, Bitcoin, and Bitcoin Cash. Payments in fiat currency have already started, but no payments in Bitcoin or Bitcoin Cash have been made to creditors yet.
