Key Points
- Mt. Gox transferred 13,265 BTC (worth $784 million) on August 20, 2024, with 12,000 BTC moved to new cold storage and 1,265 BTC to a distribution wallet, as reported by Arkham Intelligence.
- A BitGo wallet, likely associated with Mt. Gox, moved over $2 billion worth of bitcoin on August 13, 2024, potentially initiating the next phase of creditor repayments.
The defunct cryptocurrency exchange Mt. Gox made headlines once again, transferring 13,265 Bitcoin (BTC) worth approximately $784 million. This marked the exchange’s first major on-chain activity since late July. According to blockchain analytics firm Arkham Intelligence, the majority of this transfer—12,000 BTC valued at $709 million—was moved to an empty wallet starting with “1PuQB”, while the remaining 1,265 BTC (about $75 million) was sent to an address labeled as a Mt. Gox cold wallet.
This significant movement has sparked speculation about potential Bitcoin distribution to creditors awaiting reimbursement since the exchange’s collapse in 2014. However, Alex Thorn, head of research at Galaxy Digital, suggested that the impact on markets may be limited, as only a small portion of the transferred amount appears to be intended for distribution.
Interestingly, the Bitcoin price has remained relatively stable following these transactions, holding above $59,000, according to data from CoinGecko. This muted market reaction contrasts with previous instances of Mt. Gox-related selling pressure impacting BTC’s price.
BitGo’s Role in the Distribution Process
On August 14, 2024, a week prior to Mt. Gox’s recent transfer, we at Token Times AI reported that blockchain data revealed significant activity from a wallet believed to belong to the cryptocurrency custody platform BitGo. This wallet, which had previously received $2.19 billion in Bitcoin from Mt. Gox, initiated test transactions and transferred nearly $2 billion worth of Bitcoin to another wallet.
BitGo is understood to be the fifth exchange working with the Mt. Gox Trustee to distribute funds to creditors. The recent wallet activity suggests that the distribution process may progress, with some Reddit users in the Mt. Gox creditors channel reporting the receipt of funds in their BitGo accounts.
Ongoing Distribution to Exchanges
As part of the ongoing repayment process, Mt. Gox has transferred substantial amounts of Bitcoin to designated crypto exchanges. On August 21, 2024, data from Arkham Intelligence showed that approximately $75.36 million in bitcoin was transferred from Mt. Gox’s cold wallet to an address identified as belonging to Bitstamp, another exchange nominated by the Mt. Gox trustee for creditor repayments.
Throughout July, the Mt. Gox Trustee had already transferred billions of dollars worth of bitcoin to other designated exchanges, including Bitbank, Kraken, and SBI VC Trade. These exchanges are tasked with distributing the recovered bitcoin to Mt. Gox creditors.
The Long Road to Resolution
The recent developments mark significant progress in the decade-long Mt. Gox saga. Established in 2010, Mt. Gox was once the world’s largest Bitcoin exchange before suffering a major security breach in 2014, losing at least 850,000 BTC. Since then, thousands of creditors have been waiting for the return of their funds.
In July 2024, Mt. Gox’s rehabilitation trustee announced that Bitcoin and Bitcoin Cash distributions would commence for approximately 127,000 creditors owed over $9.4 billion. Despite the ongoing distributions, Mt. Gox still holds a substantial 46,164 BTC worth roughly $2.7 billion.
As the situation unfolds, creditors and the broader cryptocurrency market remain alert for official announcements from BitGo, the Mt. Gox Trustee, or other involved parties regarding the ongoing distribution of funds. The resolution of the Mt. Gox case represents one of the most significant events in cryptocurrency history, potentially bringing closure to many early Bitcoin adopters and investors affected by the exchange’s collapse.
