Mt. Gox Shifts $2.2B in Bitcoin to Unidentified Wallets
Defunct crypto exchange Mt. Gox on Monday transferred Bitcoin worth some $2.2 billion to unmarked wallets, according to data intelligence firm Arkham.
Data showed the exchange moved the Bitcoin from its cold wallet to two unknown addresses. About 30.3K BTC went to a wallet marked “1FG2C…Rveoy,” while 2K BTC was transferred to Mt. Gox’s cold wallet “1Jbez…LAPs6.” Later, this 2K BTC was moved to an unmarked wallet “15gNR…a8Aok.”
These moves were made just days after moving 500 BTC (about $35 million) into two unmarked wallets. This was the largest fund movement from the exchange in months and the first since late September. It has stirred discussions in the crypto community about Mt. Gox’s strategy for settling debts with creditors.
Arkham Shows $35M Bitcoin Transfer as Mt. Gox Delays Creditor Payouts
Arkham data showed that the $35 million transfer involved two separate transactions. First, 31.78 BTC was sent to one wallet, followed by 468.24 BTC to another. The larger recipient wallet has started distributing the funds, sparking speculation about whether these actions indicate creditor repayments or preparations for market sales.
The fund transfers come as Mt. Gox’s bankruptcy trustees recently extended the creditors’ repayment deadline to Oct. 31, 2025. This decision allows more time to manage the complex process of compensating those impacted by the 2014 collapse.
As a result, creditors expecting payouts soon must now wait an extra year to access their Bitcoin. This delay has sparked a positive reaction in the market, as it technically avoids the immediate liquidation of billions in BTC, reducing the risk of a major price drop.
Massive Bitcoin Transfers Loom as Mt. Gox Creditors Await Payouts
Mt. Gox once dominated the Bitcoin exchange landscape, managing over 70% of all Bitcoin transactions. However, its collapse in 2014, caused by a massive hack, resulted in the loss of hundreds of thousands of Bitcoins. This event remains one of the most significant security breaches in cryptocurrency history.
Now, the exchange’s creditors are expected to receive a substantial amount of Bitcoin, with estimates ranging from 65,000 to as much as 140,000 BTC. Such a large volume, if released and sold off quickly, could significantly boost Bitcoin’s supply. This increase, following the basic principle of supply and demand, could drive down its price, impacting the broader market.
Large transfers from Mt. Gox’s wallets, like the recent movement of 500 BTC, often trigger a ripple effect. Investors worried about an impending dump of coins may decide to sell preemptively. This behavior can lead to a self-fulfilling outcome where Bitcoin’s price drops not because of an actual surge in supply but due to the fear of one.
