Breaking: Mt Gox Transfers Bitcoin To New Wallet, Sign of Repayment?

Defunct crypto exchange Mt Gox transferred 44,527 Bitcoin (BTC) to a new crypto exchange amid anticipation of repayment to a group of creditors. The bankrupt crypto exchange announced that it will begin repayment for its creditors who lost assets in the 2014 hack. Recent weeks have seen price swings following the announcement and other industry factors. 

Mt Gox Moves Bitcoin

On-chain data from blockchain analytics firm, Arkham shows Mt Gox made two Bitcoin transactions as some users expect repayment. The first transaction was 0.021 BTC to a wallet raising eyebrows as a transfer test. Subsequently, the wallet linked to the exchange moved 44,527 BTC worth approximately $2.84 billion to an internal wallet. The wallet has since transferred an additional 47,229 BTC as flows continue.

Initial moves are flagged as a transfer test as the exchange repositions to roll out creditors’ funds. At press time, the wallet holds 138,985 BTC worth $8.87 billion. Similarly, on July 4, on-chain data showed a wallet linked to Mt Gox moved 47,000 Bitcoin worth about $2.7 billion to a new wallet and subsequently two more transfers. The first of 1544 BTC approximately $84 million was sent to Bitbank while 1,200 BTC worth $64 million was sent to a new wallet. 

Initial reaction by the community awaits the repayment which is expected to see selling pressure. However, the phased repayment might reduce the pressure anticipated in several quarters. Furthermore, bullish activity is expected as some commentators opine that institutional investors might swoop in a large number of assets as the market rebounds. 

Eligible Companies See Inflows

The hack of Mt Gox saw investors lose out on funds but will see a repayment in phases as the exchange distributes 142,000 worth of Bitcoin.

The current payment is for creditors who agreed to a 10% slash of their shares before the completion of the civil litigation suit. CoinShares estimated 75,000 BTC to flow into the market which can cause bearish sentiments. 

Five companies; Bitgo, Kraken, Bitstamp, SBI VC Trade, and Bitbank are tasked with the redistribution. As noted earlier,  a transfer was made to Bitbank. 

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