Mt. Gox Transfers $2.5 Billion in BTC to New Wallets

Defunct crypto exchange Mt. Gox made headlines again by transferring a significant amount of Bitcoin. On July 24, the exchange moved 37,477 BTC

Defunct crypto exchange Mt. Gox has made another large Bitcoin transfer. On July 24, the exchange moved 37,477 BTC, valued at $2.5 billion, to an unknown wallet.

As reported by blockchain analytics firm Arkham Intelligence, the transfer took place at 4:53 am UTC. Of the total amount shifted, 5,106 BTC were sent to a separate Mt. Gox owned cold wallet. The remaining Bitcoin now resides in the new, unidentified wallet.

This follows a recent transfer on July 22, when the firm shifted $2.8 billion in BTC to several wallets. Notably, $340 million of this was sent to four wallets belonging to crypto exchange Bitstamp.

Mt. Gox Repayments: 40% of BTC Returned, $5.6 Billion Still Pending

Bitstamp is working with the exchange trustee to return funds to creditors. To date, they have distributed just over 40% of the Bitcoin owed to creditors. This leaves around $5.6 billion, or 60%, still to be returned.

CryptoQuant data suggests that Mt. Gox owes around $9 billion in Bitcoin to roughly 127,000 creditors. These creditors have been waiting over a decade to recover their funds following the exchange’s 2014 collapse.

Market Reactions to Bitcoin Movements: Analysts Weigh In

The news of the firm’s Bitcoin movements has sparked several reactions in the market. Some speculate a potential mass sell-off event, but several analysts believe these fears are overstated.

For instance, Galaxy Digital’s head of research, Alex Thorne, notes that over half of the Bitcoin being repaid to creditors is owed to various funds. As a result, this Bitcoin is unlikely to hit the spot market directly. Furthermore, Thorne suggests that individual creditors may not sell their Bitcoin immediately, hinting that many could hold onto their assets.

Meanwhile, other market commentators shared their thoughts. They believe the potential impact of the firm on Bitcoin has already been priced into the market. Hence, they argue that the worst of Bitcoin’s price action is behind us.