Mt. Gox, the defunct cryptocurrency exchange, has moved over $9 billion worth of Bitcoin to a new wallet as it prepares to repay its creditors.
Over the past 12 hours, Mt. Gox transferred more than 140,000 BTC, valued at roughly $9 billion. Within the last hour alone, the exchange moved 12,240 BTC, approximately $840 million, according to data from Arkham Intelligence.
Following this transfer, the price of Bitcoin experienced a minor dip, dropping below $68,500 after peaking at over $70,600 on Monday, based on CoinGecko’s data.
This transfer activity is happening ahead of the October 31 repayment deadline. Mt. Gox plans to repay its creditors with 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen. Currently, the wallet holds a substantial balance of approximately $9.5 billion.
Market participants are speculating that the large release of Bitcoin could trigger a sell-off, potentially depressing Bitcoin’s price. However, some experts believe that Bitcoin maximalists might prevent a significant market impact.
Established in 2010, Mt. Gox once handled 70% of global Bitcoin transactions. However, in 2014, a devastating cyberattack resulted in the loss of around 750,000 BTC from customer accounts and an additional 100,000 BTC from the exchange’s own funds. Although 200,000 BTC were later recovered, the legal complexities in Japan have delayed restitution to the victims.
In 2018, the Tokyo District Court approved a rehabilitation petition, leading to a vote on the rehabilitation plan in 2021. The plan received overwhelming approval, with 99% of creditors voting in favor.
