Bankrupt cryptocurrency exchange Mt. Gox is set to pay creditors 142,000 bitcoins by October this year. In the meantime, Mt. Gox’s cold wallet address transferred all of its 140,000 bitcoins to an unknown address earlier today, signaling the possible start of the repayment process. At the same time, bitcoin prices have experienced significant volatility.
(Previous Summary: Will the release of 140,000 bitcoins by Mt. Gox cause a bitcoin crash?)
(Background Information: Worst Exchange Mt. Gox to Repay $9.5 Billion in Bitcoin, K33 Research: Could Cause BTC Dump)
Table of Contents:
Mt. Gox Cold Wallet Transfers 140,000 Bitcoins
Bitcoin Falls Below $67,500
Possible BTC Dump?
Cryptocurrency exchange Mt. Gox went bankrupt in 2014 after losing 850,000 bitcoins in a hack. Now, after a decade, the repayment process is accelerating, with a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen expected to be paid to creditors by October this year.
Starting this month, Reddit users have been disclosing screenshots of Mt. Gox’s Kraken BTC and BCH payment API interfaces, which show “payment in progress” with an update date of May 13. This indicates that Kraken is preparing for the payment, and creditors may soon receive their 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, with a value of approximately $9.61 billion.
[Image]
Before receiving the large amount of bitcoins today, the 1Jbez… wallet had received small amounts of bitcoins from two addresses on May 20 and 28. The funds from these two addresses originated from a CoinJoin mixer address.
Although there have been no further transfers from the 1Jbez… wallet at the moment, BTC experienced a significant drop at almost the same time, reaching a low of $67,485 before the deadline, a decrease of over 4% within 12 hours.
[Image]
Over the past decade, the price of bitcoin has increased by over 10 times. Market concerns arise from the possibility that once the over 140,000 bitcoins are returned to investors, it may cause short-term selling pressure and bring volatility to the bitcoin market.
Crypto company K33 Research previously reported that the repayment of 142,000 bitcoins and 143,000 BCH by Mt. Gox could become a significant factor affecting price drops in the coming weeks.
K33 Research pointed out that while creditors are unlikely to collectively sell the funds they receive, this expectation may lead market participants to exercise caution and avoid taking risks before the event:
[Image]
Related Reports
After Ten Years, Mt. Gox Exchange Repays 140,000 Bitcoins! Will Bitcoin Crash?
Bitcoin Faces Massive Dump from Mt. Gox! Announces Claims: Unlocking 200,000 Bitcoins in the Next Two Months
Are 140,000 Bitcoins Being Dumped? Mt. Gox Creditors Receive Yen Compensation, Repayment Deadline Extended to October 2024