Collapsed crypto exchange Mt. Gox moves $2.2 billion worth of crypto to resume repayments to creditors.
Defunct crypto exchange Mt. Gox has moved another $2.2 billion worth of BTC from its cold wallets to three new wallets. A portion of those funds were then moved to centralized exchanges (CEXs) OKX and B2C2, indicating it is resuming repayment to creditors.
While some have received their payments already, the exchange’s bankruptcy estate halted the process, citing issues such as paying some creditors twice. It accepted fault and requested such creditors to return the additional funds.
Spot On Chain, a blockchain analytics platform, reported that Mt. Gox moved tremendous volumes and mentioned where the assets were sent. “Mt. Gox transferred another 32,371 $BTC ($2.19B) to 3 new wallets in the last 2 hours,” it posted on X. “Over the last 4 days, Mt. Gox has transferred out a total of 32,871 $BTC ($2.22B). Among these tokens, 296 $BTC ($20.13M) was moved to #B2C2 and #OKX.” The exchange still holds about $810 million worth of BTC—12,006 BTC—on its “known wallets.”
The repayment process kicked off earlier this year, with the collapsed exchange owing more than $9 billion to about 127,000 creditors. Ever since the repayments began, BTC holders have embraced resistance to its price growth. These creditors have waited 10 years to see their assets again, during which time BTC’s value has surged by a whopping 8,500%. It was assumed those receiving the reimbursements would sell it immediately to cash out on the profits.
The Repayments Have Not Added to Selling Pressure Yet
Mt. Gox completed 41.5% of repayments by the end of July, transferring some 59,000 BTC to creditors. However, market insights revealed the recipients held onto their funds instead of selling them. A July 29 Glassnode report mentioned, “Creditors opted to receive BTC, rather than fiat, which was new in Japanese bankruptcy law,” adding, “As such, it is relatively likely that only a subset of these distributed coins will be truly sold onto the market.”
The exchange began moving BTC on November 1, according to Arkham Intelligence, spurring talks of it restarting reimbursements. It looks like that was the case with the recent movements revealing so.
Mt. Gox was the biggest crypto exchange back in the day, processing about 70% of all BTC transactions at one point. It collapsed in 2014 after cybercriminals exploited the exchange’s reserves, which were stored in hot wallets silently for about two years until the team froze withdrawals. Mt. Gox lost about 850,000 BTC due to the persistent hack.
