Breaking: Bitgo Kickstarts Mt Gox Bitcoin Repayments With $2B BTC Moved

A Bitcoin (BTC) wallet associated with the Mt. Gox exchange has moved a huge $2 billion worth of BTC. This wallet was identified as Bitgo, the fifth and final exchange working with the defunct platform’s Trustee to initiate BTC and BCH payouts. Hence, it signals the start of Bitgo payouts to the collapsed exchange’s creditors.

Bitgo Initiates Test Transactions For Mt. Gox Creditor Payout

According to Arkham Intelligence, the wallet, identified as bc1q26, received 33,105 BTC from the defunct exchange two weeks ago. The BTC stash was worth approximately $2.19 billion at the time, now valued at $1.97 billion. The wallet is believed to be under the control of Bitgo. On Tuesday, August 13, the wallet executed a test transaction.

Earlier today, it shifted a small fraction of Bitcoin valued at $5.88. This move indicates that the long-awaited repayment process may soon begin. Moreover, it offers some relief to the several creditors affected by the collapse of Mt. Gox in 2014, who are awaiting repayments via Bitgo. Thereafter, Bitgo-linked wallet shifted the entire reserve of 33,105 BTC to an unmarked address.

The distribution of funds has progressed significantly, with 67.7% of the process completed, according to recent data from CryptoQuant. Currently, more than $3.2 billion worth of Bitcoin has been distributed 17,000 creditors. However, despite this large-scale payout, the BTC price remained resilient.

The finalization of these Mt. Gox repayments is seen as a significant milestone. It marks the resolution of a long-standing issue in the crypto industry. In a report from late July, Glassnode referred to this event as the conclusion of a “major market overhang” that has persisted since the exchange’s collapse in 2013.

A Quick Recap

On July 5, Mt. Gox announced that it had initiated the repayment process to its creditors, distributing BTC and Bitcoin Cash (BCH) according to its rehabilitation plan. The payouts are being processed through several prominent crypto exchanges, including Kraken, Bitstamp, and Bitgo.

Reddit users have also confirmed the commencement of these payments, with one user noting that the “rehabilitation trustee” had transferred BTC and BCH to their account. However, despite official confirmation of repayments by the collapsed exchange’s Trustee, some creditors have been complaining.

Creditors on Kraken have flagged no BTC repayments received. Furthermore, Bitstamp users faced restrictions on BTC withdrawal due to verification steps, such as a video call with the support team. On the contrary, Bitgo’s initiation of test transactions marks a positive development. Nonetheless, some creditors on Bitgo complaining about a favorable approach toward institutional benificiaries.

In total, over $9.4 billion worth of Bitcoin is owed to creditors who have been waiting more than a decade to reclaim their assets from the now-defunct exchange. Netizens expect Mt. Gox repayments to be completed by the end of August.