A wallet tied to the now-defunct Mt. Gox exchange recently transferred 500 BTC, valued at approximately $35 million, to unknown wallet addresses, fueling speculation about the platform’s ongoing creditor repayment process.
The movement of funds comes amid a broader distribution effort to compensate users who suffered losses during the exchange’s collapse a decade ago.
Details of the recent transactions
Source: Arkham Intelligence
According to blockchain monitoring firm Arkham Intelligence, Mt. Gox’s wallet made the 500 BTC transfer on November 1, 2024, at 00:42:49 UTC. This transaction included one transfer of 31.78 BTC and another of 468.24 BTC, collectively amounting to 500 BTC. At current market rates, Mt. Gox’s wallets still hold a substantial balance of approximately 44,905 BTC, worth over $3 billion. The transfers mark the latest in a series of transactions initiated by the exchange as they progress with creditor reimbursements.
In August, Mt. Gox conducted a major transaction, moving 12,000 BTC (worth around $700 million) to a new address. This transfer followed an active period starting in July when the exchange’s trustee began payouts to eligible creditors in Bitcoin and Bitcoin Cash.
Ongoing challenges in the repayment process
The repayment process, led by Mt. Gox trustee Nobuaki Kobayashi, has faced several delays. In October, the trustee announced a 12-month extension to the creditor repayment deadline, pushing it to October 2025. Kobayashi cited procedural challenges, including creditors not completing the required verification steps and occasional system malfunctions, such as double deposits, as reasons for the delay. Creditors must complete account verification and use one of five selected exchanges, including Kraken, to receive their disbursements.
Background on Mt. Gox’s collapse
Initially established in 2010 as a platform for card game transactions, Mt. Gox quickly pivoted to cryptocurrency trading and became the largest Bitcoin exchange globally. However, a series of hacks led to the loss of about 850,000 BTC, prompting the platform’s collapse and subsequent bankruptcy filing in 2014. Around 200,000 BTC were recovered and are now being used for creditor reimbursements.
The ongoing liquidation process and periodic BTC transfers by Mt. Gox have raised concerns among Bitcoin investors about potential impacts on the asset’s price. Bitcoin is trading at $69,420, dipping 4% in the past 24 hours.