Mt.Gox Transfers $9B Bitcoin to Single Address as Part of Repayment Plans, Sparking BTC Price Plunge

More than 140,000 BTC, worth approximately $9 billion, were transferred to Mt. through thirteen transactions, likely as part of a plan to repay creditors by October 31, 2024. Gox wallets to an unknown address.

The market reacted negatively to these moves; Bitcoin fell 1.4% to $67,680 after rising above $70,000 on Monday.

Defunct Bitcoin exchange Mt. Wallets belonging to Gox transferred 140,000 Bitcoins (BTC), worth approximately $9 billion, to an unknown address as of the early hours of the Asian morning on Tuesday.

Once the world’s largest bitcoin exchange, Mt. Gox was shut down in 2014 after it was revealed that it had lost hundreds of thousands of bitcoins during a hack. Creditors have since awaited repayment of their holdings; It is considered that this situation greatly adds selling pressure to the BTC markets.

Wallet activity shows that movements were made over thirteen transactions. A test trade of $3 was made on May 20, and another smaller trade of $160 was made early Tuesday. The remaining transactions ranged from $1.2 million to $2.2 billion worth of Bitcoin.

Bitinfocharts data shows that all of Mt.Gox’s Bitcoin has now effectively been moved into a single bitcoin wallet.

This is Mt. It is the first movement of assets from Gox’s cold wallets in more than five years and is likely part of a plan to distribute assets back to creditors before October 31, 2024.

All funds were transferred to a new address, “1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6,” CryptoQuant head of research Julio Moreno said in an X post.

Galaxy head of research Alex Thorn said in an X post that he expects most of the transferred Bitcoin to remain in the hands of creditors rather than being sold on the open market.

Mt. Gox addresses continue to exit:

In the last few hours Mt. A total of 42,829 Bitcoins were moved from Gox addresses.

All funds transferred to a new address: 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6 pic.twitter.com/s19TtkMP3i

— Julio Moreno (@jjcmoreno) May 28, 2024

Still, market participants appeared to be bearish on the moves, with Bitcoin losing 1.4% since the start of Asian trading hours. After Monday’s high of $70,000, it fell to $67,680.