The Rehabilitation Trustee of the defunct crypto exchange Mt. Gox has confirmed that it has not sold its significant Bitcoin holdings despite transferring over 140,000 BTC (approximately $10 billion) today. The trustee clarified in a statement that preparations to repay creditors were ongoing. According to the firm, the bankruptcy process will compensate creditors with fiat currency, Bitcoin, and Bitcoin Cash. While fiat currency payments have already begun, creditors have not received digital asset payments.
Former Mt. Gox CEO Mark Karpeles explained that the transactions were part of the distribution process. He stated that the trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year, emphasizing that there is no imminent sale of bitcoins happening.
Earlier today, the crypto community noticed multiple transactions from wallets associated with the failed Mt. Gox exchange. Blockchain analytics platform Arkham Intelligence reported that 72 Mt. Gox-linked wallets sent 141,686 BTC in batches of about 2,000 BTC to a new wallet. The new address has since transferred almost 4,022 BTC, worth over $273 million, to other wallets. Additionally, Mt. Gox-related addresses moved 142,846.22 BCH to an unmarked address labeled 1LG4G. The wallet currently holds 142,824.27 BCH, worth about $67.9 million. This movement has led to speculation within the community that Mt. Gox might soon start repayments.
The transfers seemed to have sent jitters down the market, with Bitcoin’s price declining below $69,000 to $68,392 as of press time. Alex Thorn, the Head of Research at Galaxy Digital, suggested this could be the beginning of distributions to creditors. While the situation unfolds, the crypto community eagerly anticipates further developments in the Mt. Gox case.
The Mt. Gox Rehabilitation Trustee’s decision to hold onto its Bitcoin holdings despite ongoing distribution preparations reflects the complexities of the bankruptcy process. The movements of large amounts of BTC and BCH have sparked interest and speculation within the community, impacting the overall crypto market. As creditors await potential repayments, the trustee’s actions will continue to be closely monitored by industry experts and enthusiasts alike.
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