The defunct cryptocurrency exchange Mt.Gox has moved more than $9.400 billion in Bitcoin to an unknown wallet address in the last few hours.
Mt. Gox's creditor repayment plan is about to be officially launched. Mark Karpeles, former CEO of Mt. Gox, and the exchange's trustee, have confirmed in a release preparations to distribute the funds to creditors this year.
The former cryptocurrency exchange, which was hacked in 2014 losing more than 850.000 BTC at the time, has until October 31 of this year to refund users and investors who were affected by the platform's closure.
However, recently the exchange moved all of his Bitcoin funds to a new address unknown wallet. This series of BTC transactions has shaken the crypto market in general.
Mt. Gox moves 141.680 BTC to new Bitcoin wallet
According to data From Arkham Intelligence, Mt. Gox has made 13 Bitcoin transactions from its associated wallets, moving around 141.680 BTC in the past few hours to an unknown wallet address. This amount of bitcoins is valued at more than $9.400 billion, based on the current price of the cryptocurrency in the market, and it is presumed that these fund movements could be related to the repayment plan of the failed exchange's creditors.
As a result, the bitcoin price has reacted downward, correcting 4% on May 28, after knowing the BTC movements made by the exchange.
Source: CoinMarketCap
The bearish Bitcoin price reaction to Mt. Gox's recent fund movements highlights the impact that the exchange's creditor repayments could have on the crypto market.
Bitcoin investors anticipate potential massive selling pressure for the cryptocurrency once Mt. Gox's creditors are repaid by the exchange, which would trigger a wave of price volatility. A preview of this is the volatility experienced by the bitcoin price this Tuesday, when it lost the $70.000 level, falling to $67.500 per BTC, and then recovered slightly and was trading above $68.600, at the time of writing this article.
The creditor repayment plan
Mt. Gox's creditors have been engaged in a lengthy legal battle in an attempt to recover their funds. As part of this effort, the Mt. Gox trustee has presented multiple options for possible repayment, publishing the latest report on the exchange's actions in September 2023. This report details the procedure for reimbursing the exchange's creditors. under three payment methods, before October 31, 2024.
According to the document, repayments could begin in sequence this year for creditors who have provided the data and information required by the Rehabilitation Union.
Mt. Gox was once the largest cryptocurrency exchange on the market. However, after recognizing a series of vulnerabilities in 2014, it closed its operations and suspended withdrawals for users and investors. In February of that same year, the platform acknowledged that it had lost the sum of 850.000 BTC due to a series of hacks, and declared bankruptcy. Since then, the exchange's creditors have been waiting to receive their funds back.
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Note: This article was updated to add recent statements by Mark Karpeles regarding the soon beginning of repayments to Mt. Gox creditors.
