Mt. Gox Moves $9.62 Billion in Bitcoin, Raising Hopes for Creditors' Reimbursement by 2024
Summary:
Bankrupt crypto trading platform Mt. Gox has transferred $9.62 billion worth of Bitcoin to a new wallet, marking the first on-chain movement from the exchange in five years. This action aligns with the platform's plans to repay its creditors by October 2024 and has sparked hope among claimants. The possibility of payment could also lead to future selling pressure from creditors.
In a move sparking optimism among claimants, the bankrupt crypto trading platform, Mt. Gox, has transferred a total worth of $9.62 billion in Bitcoin to a fresh wallet. The consolidation of 141,686 Bitcoins (BTC), facilitated through the moving of assets from various other associated cold wallets into a new wallet labeled "1Jbez", is seen by many as a promising sign that the platform may be readying to reimburse its users. These users have had their funds virtually frozen since 2014 when Mt. Gox put all trading and withdrawals on hold. These latest transfers constitute the first on-chain movement from the platform in half a decade and align with their previously announced intent to clear all debts with creditors by late October 2024. Anndy Lian, governmental blockchain specialist and author of NFT: From Zero to Hero, interprets the $10 billion Bitcoin consolidation as a clear indication of Mt. Gox's plans for repayment. He communicated to Cointelegraph, that in his opinion, this long-awaited asset movement is likely part of an effort to repay creditors as promised before the deadline in October 2024. Yet the possibility remains that repayment could again be postponed, as the deadline was already extended once from the original date set for a month prior to the platform's intended reimbursement of all exchange creditors in October 2023. Mt. Gox's extensive list of some 127,000 creditors are collectively owed over $9.4 billion in Bitcoin, a debt that has been languishing for more than a decade, since the platform's downfall in 2014 due to multiple unperceived hacks. Making up more than 70% of all trades within the blockchain ecosystem, Mt. Gox was one of the first platforms of its kind. However, after a severe breach of security in 2011, the platform was forced to close down in 2014, impacting around 24,000 creditors and resulting in the loss of a whopping 850,000 BTC. Bitcoin's market value dipped 2% on 28th May, sinking lower than $67,500 following the initial Mt. Gox transfers, as per CoinMarketCap, before subsequently rebounding slightly over $68,000. Lian attributes this dip to the market's anticipation of potential repayments from Mt. Gox. He explains, "The 2.1% decrease to $67,505 in Bitcoin's price following the transfer signals a bearish sentiment that could potentially be a response to the forthcoming selling pressure from creditors on receipt of repayments". Despite this, Lian views a potential repayment as a solution to one of the most urgent and long-standing problems in the cryptocurrency industry.
Published At
5/28/2024 12:31:02 PM
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