Mt. Gox, the cryptocurrency exchange that disappeared on Monday, transferred about 2.2 billion USD worth of Bitcoin to an undisclosed wallet, according to data intelligence firm Arcam.
According to the data, the exchange moved Bitcoin from cold wallets to two unknown addresses. Around 303,000 BTC was sent to a wallet marked “1FG2C… Rveoy”, while 2K BTC was sent to Mt. Gox’s cold wallet “1Jbez… LAPs6”. Later, these 2K BTC were moved to an unmarked wallet “15gNR… a8Aok”.
The move comes days after 500 BTC (around $35 million) was moved to two unmarked wallets, the largest fund transfer on the exchange in months and the first since late September. It sparked discussion in the crypto community about Mt. Gox’s strategy for resolving debt with creditors.
Arcam Shows 35 Million USD Bitcoin Transfers Amid Mt. Gox’s Delayed Payment to Creditors
According to Arcam’s data, the 35 million USD transfer involved two separate transactions. First, 31.78 BTC was sent to one wallet, followed by 468.24 BTC to another wallet. The larger recipient wallet then began distributing the funds, leading to speculation as to whether this action was a repayment of creditors or a preparation for a market selloff.
The transfer of funds came after Mt. Gox’s bankruptcy administrator recently extended the deadline for creditors to repay their debts to October 31, 2025. The decision gives more time to manage the complex process of compensating those affected by the 2014 collapse.
As a result, creditors who were expecting to receive their payments soon will now likely have to wait another year to receive their bitcoins. This delay has been met with positive reactions from the market, as it technically avoids the immediate liquidation of billions of BTC and reduces the risk of a price crash.
Massive Bitcoin Transfers Imminent as Mt. Gox Creditors Await Payment
At one point, Mt. Gox dominated the Bitcoin trading landscape, controlling over 70% of all Bitcoin transactions. However, in 2014, a massive hack caused its collapse, resulting in the loss of hundreds of thousands of Bitcoins. The incident remains one of the largest security breaches in cryptocurrency history.
Currently, creditors on exchanges are expected to receive a significant amount of bitcoins, ranging from 65,000 to as much as 140,000. If this large amount is released and sold quickly, it could significantly increase the supply of bitcoins. According to the basic principles of supply and demand, this increase in supply could lower the price of bitcoins, which could have implications for the broader market.
Large transfers from Mt. Gox wallets, such as the recent 500 BTC move, often have a ripple effect. Investors who are concerned about an impending coin dump may preemptively sell. This behavior can have a self-fulfilling effect, with the Bitcoin price falling due to fear of a supply surge, rather than due to an actual surge in supply.
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