**Mt. Gox Initiates $2.7 Billion Bitcoin Movement Ahead of $9 Billion Creditor Payout**
By Shalini Nagarajan
Last updated: July 5, 2024, 01:12 EDT | 1 min read
The once-prominent Japanese cryptocurrency exchange Mt. Gox has made a notable move, transferring Bitcoin valued at $2.7 billion to a newly established wallet address. This significant transaction, the first since May, comes after a series of preliminary test transfers conducted on Wednesday.
According to a report by Arkham Intelligence, released on Thursday, Mt. Gox’s cold storage wallet transferred 47,228 BTC to a wallet ending in “6onk.” This action aligns with the exchange’s plan to commence creditor repayments early this month, aiming to distribute $9 billion worth of Bitcoin to its creditors.
Nobuaki Kobayashi, the trustee of the exchange, confirmed in June that the preparations for repayment were complete, with the process set to begin in early July as scheduled.
**A New Dawn for Mt. Gox Creditors After Prolonged Wait**
More than ten years after the exchange’s downfall due to a 2014 security breach, creditors are beginning to see signs of progress. A verification process led by the trustee in January has paved the way for the long-awaited return of funds. While the specific payout dates to designated exchanges remain confidential, the process is evidently progressing.
The anticipated total payout is projected to include 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion yen, with completion expected by October 2024.
**Bitcoin Market Anticipates Impact from Imminent Mt. Gox Payout**
The update of claims by several Mt. Gox creditors indicates forward movement in the repayment process, involving both cryptocurrency and fiat currency. Discussions on the Mt. Gox insolvency Subreddit began in mid-April, with users sharing insights into the expected payments reflected in their account’s repayment data table. Some creditors have also reported the successful transfer of fiat funds to their bank accounts.
Despite the optimistic developments, concerns loom over the potential market impact. Analysts from K33 Research caution that reintroducing a substantial volume of Bitcoin into the market could lead to price volatility, potentially exerting a downward force on Bitcoin’s valuation.
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