Collapsed cryptocurrency exchange Mt. Gox has transferred $9.62 billion worth of Bitcoin into a new wallet, bringing hope to its creditors. The 141,686 Bitcoin was consolidated into the wallet “1Jbez” from various other cold wallets associated with Mt. Gox. This move suggests that users who have been unable to access their funds since 2014 may finally be repaid. It is the first on-chain movement of funds from the exchange in over five years and aligns with Mt. Gox’s plans to repay creditors by the end of October 2024.
Anndy Lian, an intergovernmental blockchain expert and author, believes that the near $10 billion Bitcoin consolidation indicates Mt. Gox’s intention to repay its users. However, there may be further delays in meeting the current deadline, which was set in September 2023, a month before the initial repayment date of October 31, 2023.
Mt. Gox owes over $9.4 billion worth of Bitcoin to its 127,000 creditors, who have been waiting for over 10 years to recover their funds after the exchange’s collapse in 2014 due to unnoticed hacks. Mt. Gox was once a major player in the cryptocurrency exchange industry, facilitating more than 70% of all trades within the blockchain ecosystem. The collapse of the site affected around 24,000 creditors and resulted in the loss of 850,000 BTC.
Following the recent transfers from Mt. Gox, the price of Bitcoin experienced a 2% dip on May 28, dropping below $67,500 before recovering to just above $68,000. This dip in price could signify that the market is anticipating a potential repayment by Mt. Gox. Anndy Lian suggests that a potential repayment would resolve one of the long-standing issues in the crypto industry.
In conclusion, the recent transfer of Bitcoin by Mt. Gox into a new wallet raises the possibility of creditors finally being repaid after years of waiting. The market has responded with a slight dip in Bitcoin’s price, indicating the anticipation of a potential repayment.