Mt.Gox transferred $9 billion in Bitcoin to a single address as part of a repayment plan, triggering a plunge in BTC prices

Mt.Gox moved $9 billion in bitcoin to a single address as part of a repayment plan, triggering a plunge in BTC prices. Nearly 107,000 bitcoins have been transferred since early in the Asian session on Tuesday, with the cryptocurrency down 1.2% due to expected selling pressure. During a confrontation with former Mt. Gox CEO Mark Karpeles, Mt. Gox creditor Kolin Burges appeared on camera. The event took place at one of the world's largest events in the cryptocurrency, blockchain and Web3 space, taking place in Austin, Texas, on May 29-31, 2024.

More than 140,000 BTC, valued at approximately $9 billion, were transferred from the Mt.Gox wallet to an unknown address, and these actions may be part of a plan to repay creditors, which is scheduled to be completed by October 31, 2024. The market took a dim view of these transfers, with the price of Bitcoin falling 1.4% to its lowest point, after reaching a high of more than 70,000 on Monday. Mt. Gox, once the world's largest bitcoin exchange, shut down in 2014 after losing hundreds of thousands of bitcoins to hackers. Since then, creditors have been waiting to be repaid their holdings, a process widely expected to add selling pressure to the BTC market.

  Wallet activity shows that these transfers were made in 13 separate transactions. A test transaction worth $3 was conducted on May 20, and a smaller transaction worth $160 was conducted earlier on Tuesday. The remaining deals ranged from $1.2 million to $2.2 billion. According to Bitinfocharts, all of Mt.Gox's bitcoins have now been effectively transferred to a single bitcoin wallet. This is the first time in more than five years that assets have been moved from Mt.Gox's cold wallet, possibly as part of a plan to distribute assets to creditors by Oct. 31, 2024. CryptoQuant research at Julio Moreno said in a post on X platform, all the COINS have been transferred to a new address "1 jbezdvd9vsk9o1ga9uqlydeuevhklaps6".

Galaxy's head of research, Alex Thorn, said in a post on the X platform that he expects most of the transferred bitcoins to be held by creditors, rather than sold on the open market. The outflow from Mt.Gox addresses continues to increase: In the last few hours, a total of 42,829 bitcoins have been transferred from Mt.Gox addresses. All the COINS have been transferred to a new address: 1 jbezdvd9vsk9o1ga9uqlydeuevhklaps6. Still, market participants expressed pessimism about these transfers, with Bitcoin falling 1.4 percent since the start of the Asian trading session to its lowest point since Monday's high of more than 70,000.