Tuesday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

28 May 2024

Billions in Bitcoin from the defunct crypto exchange Mt. Gox moved to an unknown wallet, causing a market stir.

On May 28, Bitcoin (BTC) fell 2% after 107,547 BTC, worth nearly $7.3 billion, were transferred from wallets associated with the collapsed crypto exchange Mt. Gox to an unknown wallet. This significant movement precedes Mt. Gox’s plan to return BTC holdings to creditors by October.

Blockchain tracking account Whale Alert highlighted these transfers on May 28, reporting six on-chain transactions ranging from 3,999 BTC to 32,499 BTC within a few hours. Blockchain explorer Arkham Intelligence detailed that the transactions, conducted between 1:41 am and 4:46 am UTC, originated from multiple Mt. Gox cold wallets, typically moving 2,000 BTC at a time.

All transactions were directed to a single, unlabeled address now holding 107,547 BTC, valued at nearly $7.29 billion at the time of writing.

The Mt. Gox trustee firm, Nagashima Ohno and Tsunematsu, has not responded to inquiries about the purpose or destination of the transferred Bitcoin.

Following these transactions, Bitcoin’s price dropped from $69,374 to $67,875, according to CoinMarketCap. Analysts at K33 Research previously warned that the movement of Mt. Gox-era Bitcoin could unsettle the market and put downward pressure on prices.

Mt. Gox, which collapsed in 2014 due to multiple unnoticed hacks, owes over $9.4 billion worth of Bitcoin to approximately 127,000 creditors. The final repayment deadline is set for October 31, with the trustee initiating contact with creditors in January to verify their identities and exchange accounts for repayment.