In This Post:
- Mt. Gox transfers $2 billion worth of Bitcoin to a new address.
- Redistribution process aims to compensate creditors from the 2014 hack.
- Ongoing transfers have minimal impact on Bitcoin’s market price.
Large Bitcoin Transfer by Mt. Gox
Mt. Gox, which happens to be a defunct cryptocurrency exchange, recently moved Bitcoins worth over $2 billion to a new address. This major transfer is a part of $9 billion redistribution that Mt. Gox planned for its creditors All these creditors are actually victims of the 2014 notorious hack which resulted in theft of around 850,000 BTC..
The latest transaction took place late Tuesday and was identified by Blockchain analysis firm Arkham Intelligence. At 7:28 PM ET, Mt. Gox transferred 33,105 BTC, valued at $2.19 billion, to an address tagged “bc1q26”. The owner of this new address is currently unknown.
Ongoing Redistribution Process
Mt. Gox started its long-pending redistribution process in early July after which, Mt. Gox started BTC worth billions to different exchanges, including Bitstamp, Kraken, Bitbank and SBI VC Trade. Bitstamp announced that it will start redistributing BTCs received from Mt. Gox to the creditors by 25th of July.
In a statement on July 24, the Mt. Gox trustee detailed the progress of the redistribution process. The trustee confirmed repayments to certain creditors using Bitcoin and Bitcoin Cash through different crypto exchanges on July 5, 16, and 24. So far, payments have been made to over 17,000 creditors. According to Arkham data, the Mt. Gox wallet still holds over 80,000 BTC, worth approximately $5.26 billion.
Impact on Bitcoin Market
Impact of this redistribution process on the Bitcoin market is uncertain as the creditors are sitting on 10 year profit which may create selling pressure as they might redeem their investment. However, many creditors are long-term holders and they might decide not to sell these BTCs, in this case, this can prevent potential negative effects on the market.
As of the time of the report, Bitcoin is trading at $65,947, reflecting a 0.8% drop in the last 24 hours. The price ranged between a maximum of $66,970 and a minimum of $64,022. Bitcoin is down 10.8% from its all-time high of $73,737, which it reached in March.
Historical Context
Mt. Gox used to be the largest crypto exchange in the world, it started its operations about 10 years ago. However, it experienced a major setback in 2014 when a significant hack led to theft of approximately 850,000 BTC from their user funds. This ongoing redistribution process aims to compensate victims of that 2014 hack.
Despite initial fears, the Mt. Gox redistribution process has not drastically affected the Bitcoin price. According to a Glassnode report, the activity of Mt. Gox creditors, many of whom are long-term holders, have helped to stabilize the market by reducing the immediate selling pressure.
In short, Mt. Gox’s recent transfer of $2 billion in Bitcoin to a new address is a part of its effort to redistribute assets to its creditors. The impact on the Bitcoin market has been less severe than anticipated, thanks to the behavior of long-term holders among the creditors. The ongoing process highlights the significant role of trust and transparency in the cryptocurrency industry.
