Mt. Gox, the bankrupt cryptocurrency exchange, is set to pay 142,000 bitcoins to creditors by October this year. Meanwhile, this morning, all 140,000 bitcoins from Mt. Gox’s cold wallet address were transferred to an unknown address, indicating the possible commencement of repayments. At the same time, bitcoin has experienced severe fluctuations.
(Previous summary:
Air Raid Alert: Mt. Gox prepares to repay 140,000 BTC, will bitcoin crash?)
(Supplementary background:
The Worst Exchange: Mt. Gox is repaying $9.5 billion worth of bitcoins, K33 Research: May cause BTC sell-off)
Table of Contents:
Mt. Gox transfers all 140,000 bitcoins from cold wallet
Bitcoin falls below $67,500
Will it cause a BTC sell-off?
Mt. Gox, which went bankrupt in 2014 after losing 850,000 bitcoins due to hacking, is now accelerating repayments after 10 years. It is expected to pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen in cash to creditors by October this year.
Starting this month, Reddit users have gradually revealed that MtGox’s Kraken BTC and BCH payment APIs show “payment preparation”, with the update date being May 13, indicating that Kraken is preparing for the payments and creditors may soon receive BTC and BCH repayments.
Earlier today, Arkham Intelligence monitoring discovered that Mt. Gox’s cold wallet transferred all 141,686 bitcoins through multiple transactions to an unknown wallet address 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6 between 9:41 and 14:07 this morning, worth approximately $9.61 billion.
Currently, there have been no further transfers from 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6.
Before receiving a large amount of bitcoins today, 1Jbez… had previously received small amounts of bitcoins from two addresses on May 20 and 28, both of which originated from CoinJoin mixer addresses.
Although there have been no further transfers from the 1Jbez… wallet that received the bitcoins, BTC coincidentally experienced a significant drop in value during a similar time period, reaching a low of $67,485 before the deadline, a decrease of over 4% within 12 hours.
Over the past 10 years, the price of bitcoin has increased by over 10 times. Market concerns arise as the repayment of over 140,000 bitcoins to investors may potentially cause short-term sell-offs and bring volatility to the bitcoin market.
In a report last month, cryptocurrency company K33 Research stated that Mt. Gox’s repayment of 142,000 bitcoins and 143,000 BCH, this significant amount of cryptocurrency repayment, “may become a significant factor affecting price decline in the coming weeks.”
K33 Research pointed out that while creditors are unlikely to collectively sell their received funds, this expectation may prompt market participants to exercise caution and avoid taking risks before the event occurs.
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