Mt. Gox Transfers 500 BTC to Unknown Addresses – Is It Related to Payouts?

Bitcoin linked to the collapsed Mt. Gox exchange has resurfaced. On-chain data showed a transfer of $35 million in Bitcoin from a wallet associated with the defunct exchange to unknown addresses.

The movement raised questions about whether it was related to repayments to creditors.

Mt. Gox Transfers 500 BTC Worth $35 Million

The blockchain intelligence platform Arkham revealed that 500 BTC, equivalent to about $35 million, were moved from a Mt. Gox wallet.

The movement consisted of two transactions: 31.78 BTC and 468.24 BTC, both sent to unmarked addresses. This was the first major coin movement from wallets associated with the defunct exchange in a month.

Despite the transfer, there is still a significant amount of Bitcoin in wallets linked to the exchange. Arkhamdatashows that 44,905 BTC, valued at approximately $3.1 billion, remain in Mt. Gox-flagged wallets.

However, whether the latest transaction was part of the creditors' repayment process is unclear.

Mt. Gox has faced ongoing challenges in repaying its creditors. The deadline for repayment was extended by a year, with creditors now expecting their funds by the same date in 2025.

According to Mt. Gox's official statement, many creditors still haven't received their funds.

This is because they have not completed the necessary procedure for receiving repayments," the report added.

The repayment process has also been affected by system issues. In some cases, creditors received double payments due to errors. The trustee managing Mt. Gox's assets has since asked recipients to return the excess funds.

This delay and the latest Bitcoin movements have reignited concerns about how the eventual liquidation of Mt. Gox's assets could affect the broader cryptocurrency market.

Market Impact and Bitcoin Price Movements

The transfer of $35 million in Bitcoin from Mt. Gox comes at a time when Bitcoin's price faced significant volatility. On Oct. 30, Bitcoin hit a high of $73,300 but has since experienced a 5.5% correction, briefly dipping below $69,000 on Nov. 1.

However, this market pullback doesn't seem directly related to the recent Mt. Gox transfer. The price dip began around 18 hours earlier, on Oct. 31, before the movement of Mt. Gox-associated BTC.

Still, the possibility of more large Bitcoin transfers in the future has left some investors wary. Many worry that significant liquidations of Mt. Gox's holdings could drive prices down further.

Mt. Gox, one of the first Bitcoin exchanges, has a complex history. At its peak, it handled 70% of all global Bitcoin transactions. However, security breaches and hacks led to its collapse in 2014.

Since then, the exchange has involved a lengthy process of returning funds to creditors. The latest $35 million Bitcoin movement and ongoing delays in repayment continue to fuel uncertainty in the market.

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