In a hopeful development for creditors, the collapsed cryptocurrency exchange Mt. Gox has transferred $9.62 billion worth of Bitcoin into a new wallet called “1Jbez.” This consolidation of 141,686 Bitcoin from various cold wallets associated with Mt. Gox suggests that users who have been unable to access their funds since 2014 may finally be repaid. These transfers mark the first movement of funds from the exchange in over five years and align with Mt. Gox’s plans to repay creditors by October 2024.
Experts, such as Anndy Lian, an intergovernmental blockchain expert and author, believe that the near $10 billion Bitcoin consolidation is a strong indication of Mt. Gox’s intention to repay its users. Lian stated that this development is significant in the potential repayment process. Mt. Gox rehabilitation trustee Nobuaki Kobayashi confirmed that the consolidation is part of the exchange’s plans to begin repaying creditors, although he did not provide a specific timeline for the repayments.
However, there is a possibility of further delays to the current repayment deadline, which was originally set for October 31, 2023. Over $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors who have been waiting for over a decade to recover their funds after the exchange’s collapse in 2014 due to multiple hacks.
Mt. Gox was once a prominent cryptocurrency exchange, handling over 70% of all trades within the blockchain ecosystem. However, after a significant hack in 2011, the exchange collapsed in 2014, resulting in the loss of 850,000 BTC and impacting around 24,000 creditors.
Following the initial batch of Mt. Gox transfers, 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 indicate that the market is factoring in the potential repayment by Mt. Gox, as suggested by Lian.
Despite the temporary price dip, Lian believes that a potential repayment would resolve one of the crypto industry’s most persistent and urgent issues.