On Wednesday, Mt. Gox the defunct crypto exchange moved a fresh 33.96K BTC worth $2.25 billion to a wallet linked to crypto exchange Bitgo.
This is the crypto exchange’s latest onchain activity as it continues redistributing about $9 billion worth of Bitcoin assets to its creditors who lost their Bitcoin assets in a 2014 hack.
Bitgo is one of the 5 crypto exchanges Mt. Gox works with in its distribution process. It is the 5th and final exchange to receive funds from Mt. Gox for distribution to its creditors. Other crypto exchanges involved in the redistribution process include Kraken and Bitstamp.
The transaction by Mt. Gox was picked up by Blockchain analytics firm Arkham Intelligence who shared the transaction details on their X Page.
“UPDATE: MT. GOX MOVES $2.25 Billion BTC Last night Mt. Gox addresses moved 33.96K BTC ($2.25B) to addresses we believe are most likely BitGo:
bc1q26tsxc0ge7phvcr2kyczexqf5pcj8rk79cqk90h34c30dn9dskeq3gmw3f bc1q48a5tjhdjtkfv8zv6tj68767h8lgep9dpx0emrkx0yhhmum7wscs95ft36
BitGo is the 5th and final custodian working with the Mt. Gox Trustee to return funds to creditors. After these transfers, Mt. Gox now holds 46.16K BTC ($3.06B), including the new Mt. Gox address: 1MUQEiiQEckiBkrQswqq225nQTRWJ5SXZZ” Arkham tweeted.
At the time of the report, Mt. Gox is currently left with 32.89k BTC worth $2.12 billion.
Mt. Gox has previously distributed Billions of BTC assets to Kraken and Bitstamp who have both started to redistribute the assets to Mt. Gox creditors.
Over 41.5%, or 59,000 Bitcoin of the total of 141,686 BTC, has been redistributed to creditors of Mt. Gox since July 5. The redistribution process has not affected the price of Bitcoin as earlier expected by analysts and industry watchers.
This is because according to crypto analysis firm Glassnode only a few of the Mt. Gox creditors are willing to sell their BTC assets. A huge majority of them are long-term holders so the activity has not created sell pressure in the market as previously feared.
This is a stark contrast to the actions of the German government who offloaded about 50,000 BTC seized from a popular movie piracy site in Germany.
How is Bitcoin faring at the moment?
Following the activities of Mt. Gox which moved over $2.25 billion BTC last night. It is imperative to understand how that could have affected the price of Bitcoin at the moment.
At the time of report, Bitcoin is exchanging hands for $64,437 witnessing a 2.3% drop in Price in the last 24 hours with a maximum price of $66,806 and a minimum price of $63,572.
The Crypto asset is 12.5% down from its all-time high of $73,737 in March this year.
The on-chain activity of Mt. Gox had little effect on the price of Bitcoin. Bitcoin has other things going on for it including its Exchange-traded Funds which are still in session.
What to Know
- Mt. Gox is almost done redistributing its initial $9 billion BTC asset to its creditors with the exchange left with just $2.12 billion BTC assets. The activity that was feared by the crypto community to affect the price of Bitcoin has not affected it as expected. Credit to the majority of the creditors who happen not to be interested in selling their assets.
- Bitgo is the last crypto exchange to receive funds from Mt. Gox in the redistribution process.
