Mt. Gox moves $840 million in Bitcoin to new wallet

Defunct crypto exchange Mt. Gox transferred 12,240 BTC, valued at approximately $840 million, to a new wallet over the past hour, according to data from Arkham Intelligence. Following the transfer, Bitcoin’s price experienced a minor dip, dropping below $68,500 after surpassing $70,600 on Monday, according to CoinGecko’s data.

The latest movement comes ahead of the repayment deadline set by October 31. Mt. Gox plans to repay its creditors 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen. There is still a substantial balance, worth approximately $9.7 billion, in the wallet.

Market members have speculated that the large release could trigger a sell-off that depresses Bitcoin’s price. However, experts suggest that Bitcoin maximalists could shield the market from the sell-off effects.

Established in 2010 and once responsible for 70% of Bitcoin transactions worldwide, Mt. Gox suffered a devastating cyberattack in 2014 , resulting in huge Bitcoin losses for both the exchange and its customers.

The exchange reported a loss of around 750,000 BTC belonging to customers and an additional 100,000 from its own funds. While 200,000 BTC were later recovered, the legal complexities in Japan have delayed restitution to the victims.

Following the Tokyo District Court’s approval of a rehabilitation petition in 2018, Mt. Gox trustees voted on the rehab plan in 2021. The vote resulted in overwhelming approval, with 99% of creditors voting in favor of the plan.