Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of Mt. Gox beginning to transfer about 137,000 Bitcoin to a single anonymous wallet ahead of the scheduled reimbursement to creditors by October this year.
Mt. Gox
On Tuesday the 28th of May 2024 data from Arkham Intelligence noted that massive transfers were sent to a single anonymous wallet. This transfer amounted to around 137,000 Bitcoin, valued at roughly $9.3b, and was associated with the Mt. Gox holdings which are due to be reimbursed to creditors of the defunct cryptocurrency exchange by October this year.
Arkham Intelligence stated the transactions occurred on May 28th between 1:41 AM and 4:46 AM UTC. They also noted most of the transactions were for amounts of around 2,000 Bitcoin each. Mt. Gox was once the go to exchange for Bitcoin, having handled most Bitcoin transactions globally at one stage. The exchange began in 2010, but in 2011 hackers stole a massive amount of Bitcoin from the exchange. This led to the exchanges bankruptcy in 2014, with millions of dollars in Bitcoin lost. This included customer funds and Mt. Gox’s own holdings.
Some Bitcoin was eventually recovered, but legal issues in Japan slowed down the process of returning funds to those who lost money during the hack. Over the course of the past year United States authorities have charged two Russians with plotting to hack Mt. Gox’s servers.
https://x.com/WuBlockchain/status/1795276021396279693
With Mt. Gox closing in on the final stages of its closure process, they aim to distribute the Bitcoin holdings to creditors over a number of stages before the 31st of October 2024. This will include initial, mid-sized, and final lump-sum payments. One concern among this is whether or not creditors will immediately sell their Bitcoin holdings once they have been returned, and the impact this could have on the market. A sudden rise in supply and the potential dumping of around 137,000 Bitcoin on the market could saturate liquidity and potentially drive Bitcoin’s price down.
Bitcoin currently sits at a price of $68,526.56, and back in March of this year reached a new all time high when it peaked at $73,737.94 on the 14th of March 2024, according to Coingecko.
Have a great day.
Peace. CryptoGod-1.
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