Bitcoin
Bitcoin Drops Below $68K as Mt. Gox Moves Billions to Unknown Address
According to analysts at Look on Chain, one of the first Bitcoin exchanges, Mt. Gox, moved billions of dollars worth of cryptocurrencies to an external address for the first time in years.
Mount Goxwhich once dominated the crypto trading scene by handling over 70% of global Bitcoin transactions, has transferred approximately $3 billion worth of Bitcoin (Bitcoin) to an unknown address.
According to data from blockchain analytics firm Lookonchain, the exchange moved more than $2.9 billion in BTC to 1Jbez…LAPs6. Since then, funds have remained unchanged at this address.
Mount Gox Holdings | Source: Arkham Intelligence
Following the transfer, the exchange’s associated wallets now hold approximately 137,892 BTC, with a current valuation of approximately $9.3 billion. according to to Arkham Intelligence.
According to Mark Karpeles, the exchange’s beleaguered former owner, “As far as I know, everything is fine with Mt. The administrator is transferring coins to a different wallet in preparation for the distribution that will likely happen this year, there is no imminent sale of bitcoins taking place.”
As far as I know, everything is fine with MtGox. The administrator is transferring coins to a different wallet in preparation for the distribution that will likely happen this year, there is no imminent sale of bitcoins.
-Mark Karpelès (@MagicalTux) May 28, 2024
Amid the news, Bitcoin’s price fell below the $68,000 mark and the cryptocurrency is now trading at $67,790, according to CoinGecko.
Founded in 2010 in Japan, it quickly grew to become the largest Bitcoin exchange in the world. However, the success was short-lived, as in early 2014, the Tokyo-based platform abruptly halted trading, closed its website, and filed for bankruptcy protection, revealing that it had lost approximately 850,000 BTC, worth around US$450 million at the time. Subsequent investigations revealed that most of these Bitcoins had been stolen over several years, starting in late 2011, from the exchange’s hot wallets.
The exchange’s bankruptcy process was long and complicated, to say the least. However, resolution is considered to be close, with Mt. Gox potentially beginning payments to creditors as early as the second half of 2024. The total distribution could be substantial, with estimates suggesting that repayments could reach up to 2,000 million dollars.