Mt. Gox, the defunct crypto exchange, has initiated another transaction as part of its ongoing repayment plan to creditors, this time moving a small amount of Bitcoin (BTC) to Bitstamp, another major exchange participating in the distribution of funds to Mt. Gox’s former users.
Mt. Gox Trustee Continues Bitcoin Distribution
According to the latest data from Arkham Intel, early this morning, wallet addresses associated with Mt. Gox transferred approximately 0.02 BTC each to eight different deposit addresses. These movements each represent a value of around $1,400 at current prices.
Related Reading: Elon Musk Sports Bitcoin Laser-Eyes: Joining Trump At BTC 2024?
According to Arkham, these transfers are most likely a precursor to more substantial transfers, likely intended as test transactions before the final distribution of funds. “THIS MORNING: MT GOX MOVING FUNDS. Mt. Gox addresses deposited $1k to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments. Mt. Gox currently holds: $6.08B in BTC. These transfers are likely to represent test transactions.”
Mt. Gox, once the world’s leading crypto exchange, faced bankruptcy in 2014 following a high-profile hack. Since then, the exchange has been under a lengthy liquidation process, handled by a court-appointed trustee. The trustee has been tasked with the distribution of remaining assets to creditors, a process involving multiple exchanges, including Bitstamp, Kraken, Bitbank, and SBI VC Trade.
The crypto community remains vigilant regarding these transfers, given their potential impact on Bitcoin’s market price. Daan Crypto Trades, a popular crypto trader on X, commented, “Probably going to see another Mt. Gox batch of BTC sent out today. There’s 90K $BTC ($6B) left in the Mt. Gox wallets as we speak. Could see this weigh down on price in the short term once it actually lands at the creditors. Once this is all out of the way, that’s great in the long run.”
Last week, Kraken confirmed receiving Bitcoin and Bitcoin Cash from Mt. Gox and anticipated distributing these to customers within 7 to 14 days. “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee. While we will work to distribute funds as quickly as possible, please anticipate 7-14 days for funds to be credited to your account. The amount you will receive has been determined by the Trustee, and we will distribute according to their instructions,” Kraken announced.
Related Reading: Bitcoin And Crypto Enter What Could Be The Biggest Week Ever: Key Events
The effort is part of a broader strategy where exchanges like Kraken, Bitstamp, and Bitbank are set to distribute the funds to their clients within a maximum of 90 days from receipt. While the immediate market impact of these distributions remains a concern, the final resolution of Mt. Gox’s long-standing liquidation process is viewed positively in terms of market stability and closure for creditors.
At press time, BTC traded at $67,620.
Featured image created with DALL·E, chart from TradingView.com
Powered by WPeMatico
