The rehabilitation process of Mt. Gox, once the largest Bitcoin exchange globally before its collapse in 2014, continues to unfold. The latest development, as reported by Spot on chain, involves the transfer of 11,501.4 BTC, equivalent to about $1 billion.
The transfer saw 10,608 BTC, valued at $929.7M, moved to a new wallet. An additional 893.4 BTC, worth $78.3M, was transferred to a warm wallet, which is typically used for transactions and might soon see the coins moved out.
This transaction follows closely on the heels of a previous transfer where 332 BTC, valued at $25.5M, was deposited into the Bitstamp exchange. Given the magnitude of these transfers, market observers speculate that the BTC in the warm wallet will likely be moved or sold soon, potentially impacting the market.
In recent weeks, Mt. Gox has been noticeably active. This is the third notable transfer of funds by the exchange in the past month. Mt. Gox previously shuffled 12,000 Bitcoin, worth over $1 billion, on March 6, followed by another 11,833 Bitcoin on March 11.
Despite the scale of these transfers, they haven’t significantly impacted the spot price, unlike earlier this month. This is in stark contrast to the circumstances last year when the exchange’s coin transfers triggered fears of large-scale creditor sell-offs, causing significant price swings in the market.
Speculation is rife among industry observers that the large transfers from Mt. Gox could be signaling imminent creditor payouts. Creditors have the option to receive their payouts in Bitcoin. A Reddit poll conducted in July 2024, following the exchange’s first payout, revealed that most creditors were not in a rush to sell their Bitcoin. This suggests that many are choosing to hold onto their payouts rather than cashing out immediately.
Mt. Gox started repaying its creditors in July 2024, utilizing its holdings of 142,000 BTC ($11 billion), 143,000 Bitcoin Cash ($47 million), and 69 billion yen ($469 million). Some creditors received payments through the Kraken and Bitstamp exchanges. The exchange still controls approximately 35,000 Bitcoin, valued at $3.1 billion.
However, in a setback last October, Mt. Gox pushed back its final creditor payout deadline to October 31, 2025, citing ongoing verification and processing for claimants as the primary reason. As the rehabilitation process continues, the crypto community will be watching with keen interest.
