Mt. Gox the defunct crypto exchange in its latest on-chain activity moved over $2 billion worth of Bitcoin to a fresh address.
The $2 billion is part of the $9 billion worth of BTC assets Mt. Gox set out to redistribute to its creditors who were victims of a hack that occurred on the platform in 2014.
The transaction was carried out late Tuesday and was picked up by Blockchain analysis firm Arkham Intelligence.
Arkham intelligence data noted that by 7.28 pm ET, Mt. Gox transferred 33,105 BTC ($2.19 billion) to an address tagged “ bc1q26”. The owner of the address is not clear at the moment.
Mt. Gox which started its long-awaited redistribution process in early July has transferred billions worth of BTC to several exchanges including Bitstamp, Kraken, Bitbank, and SBI VC Trade.
Bitstamp earlier announced that it would start redistributing funds received from Mt. Gox to its creditors by July 25.
The Mt. Gox trustee in a July 24 statement gave details of its ongoing redistribution process and the extent they have gone. They said that they have made repayments to certain creditors with Bitcoin and Bitcoin Cash through distinct crypto exchanges on July 5,16,24. The trustee claimed to have made payments to over 17,000 creditors.
Mt. Gox wallet at the moment still holds over 80,000 BTC worth about $5.26 billion according to Arkham data
The Impact of the Mt. Gox redistribution process is yet unclear. The creditors who are now receiving their BTC assets are sitting on a 10-year profit and might be looking to sell resulting in selling pressure for Bitcoin.
The effect of these is expected to be mitigated by the Mt. Gox creditors who are long-term holders and would not sell their BTC asset.
Did the transaction affect BTC price?
As of the time of the report, Bitcoin is exchanging hands for $65,947 a 0.8% drop in the last 24 hours with a maximum price of $66,970 to a minimum price of $64,022.
The primary asset is down 10.8% from its all-time high of $73,737 which it hit in March.
What to Know
- Mt. Gox once operated the largest Bitcoin exchange in the world as of 2010 before it experienced a major hack leading to the loss of about 850,000 BTC of users’ funds.
- The Mt. Gox redistribution process has not really affected Bitcoin price as feared due to the activity of Mt. Gox creditors who are long-term holders. Their activity has mitigated the effect of creditors selling their own assets according to a Glassnode report.
