Mt. Gox Moves Over $700M in Bitcoin Amid Speculation Over Creditor Distribution

Defunct crypto exchange Mt. Gox has transferred 13,265 Bitcoin (BTC) valued at approximately $784 million. This marks the exchange’s first major on-chain activity since late July.

Blockchain analytics firm Arkham Intelligence reported that 12,000 BTC, worth $709 million, were sent to a new, empty wallet beginning with “1PuQB,” while the remaining 1,265 BTC, valued at $75 million, were sent to a wallet identified as Mt. Gox’s cold storage.

The large transfer has fueled speculation regarding potential Bitcoin distribution to creditors. However, Alex Thorn, head of research at Galaxy Digital, argues that only a small portion of the moved funds—around $74.5 million—is likely intended for distribution, with the remainder heading into fresh cold storage.

“We now think that of the 13,265 BTC moved in this tx, only 1,265 ($74.5 million) is meant to distro, w/ 12,000 going to estate fresh cold storage,” Thorn commented. His view suggests that most of these funds remain under the control of the Mt. Gox estate rather than being allocated for creditor repayments.

CORRECTION — in a prior tweet i said mt gox tx’d $1.5bn onchain. it was half that — $700m. (sorry, i misread my alerts)

AND, we now think that of the 13,265 BTC moved in this tx, only 1,265 ($74.5m) is meant to distro, w/ 12,000 going to estate fresh cold storage

so, very small
— Alex Thorn (@intangiblecoins) August 21, 2024

This activity follows a previous transaction on July 30, when Mt. Gox moved 47,229 BTC across three unknown wallets within a short time span. Arkham Intelligence indicated that 33,105 BTC from that transfer were directed to a wallet linked to BitGo, a crypto custodian assisting the Mt. Gox Trustee with creditor repayments. The funds have not moved since that time.

Mt. Gox currently holds 46,164 BTC, worth approximately $2.7 billion. Around 68% of the exchange’s funds have reportedly been distributed back to creditors, according to CryptoQuant data.

Despite the resumption of repayments, many Mt. Gox creditors have opted to hold onto their reacquired Bitcoin. Bitpanda’s deputy CEO Lukas Enzersdorfer-Konrad noted that Mt. Gox users were among the early adopters of Bitcoin, leading many to treat it as more than just an asset. “For them, Bitcoin isn’t just an asset, it’s a technology and an idea that they believe in,” he commented.

In July, the rehabilitation trustee of Mt. Gox disclosed the initiation of distributions in Bitcoin and Bitcoin Cash to nearly 127,000 creditors, with debts totaling more than $9.4 billion. This comes a decade after the exchange’s downfall in 2014, which was caused by several unnoticed security breaches, leading to the disappearance of over 850,000 BTC, now worth over $51.9 billion.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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