Eagle-eyed investors have spotted wallets belonging to Mt. Gox, a collapsed crypto exchange, moving over $7 billion of the cryptocurrency.
Defunct crypto exchange Mt. Gox has moved over 141,000 BTC, currently valued at over $7 billion, from its cold wallets.
The move has sparked concern among some investors, who fear that the large influx of cryptocurrency could negatively impact the market. However, former CEO Mark Karpelès has stated that the transfer is being made in preparation for distributions to claimants in the Mt. Gox rehabilitation plan.
The crypto exchange collapsed in 2014 after losing over 800,000 bitcoins. In 2023, a rehabilitation plan was approved by a Tokyo court, allowing creditors to receive a portion of the recovered crypto assets.
According to the plan, a total of 141,686 BTC and 142,761 BCH will be distributed among creditors. The recovered crypto assets are currently valued at over $9 billion.
The Mt. Gox estate trustee has also released a statement, reassuring investors that the transfer is part of the preparation for the upcoming creditor repayments, which are scheduled to begin later this year.
The trustee has added that no repayments have been made to creditors yet, so there is no impact on the market from the transfer. However, the future repayments could affect Bitcoin’s market dynamics.
Despite the former CEO’s statement, some analysts believe that the recipients of the recovered coins may choose to sell a portion of their holdings, which could lead to increased selling pressure in the cryptocurrency market.
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