According to the latest news in the crypto sector, Mt. Gox is continuing the activity of reimbursing creditors with new movements in Bitcoin.
A few hours ago, the defunct exchange through its Trustee moved about 3.2 billion dollars in BTC, sending the funds to Bitstamp and to other unknown addresses.
Some experts say that sales of these amounts could weaken the price action of Bitcoin, however the cryptocurrency currently seems very solid on the market.
Let’s see all the details below.
Mt. Gox news: outflow of 3.2 billion dollars in Bitcoin
According to the news reported by Arkham Intelligence, Mt. Gox has once again moved significant amounts in Bitcoin creating a tremor in the crypto exchanges.
In total since this morning, over 47,500 Bitcoin worth nearly 3.2 billion dollars have been moved. These coins will soon be used to reimburse the creditors of the exchange who were burned by a severe hack in 2014.
At the moment Mt. Gox holds a positive balance of 90,344 Bitcoin, equivalent to just over 6 billion dollars.
Following more closely the transactions labeled by Arkham as coming from the entities of Mt. Gox, we notice that the amount this morning was moved in two tranches.
The first one, the largest with 42,587 Bitcoin, was made at 5:06 UTC: these funds were sent to an unknown address that starts with 15yPU.
The second one, the smaller one with 5,110 Bitcoin, was instead processed at 6:27 UTC and involves both the unknown address 1JKMS and the exchange Bitstamp.
In particular on Bistamp, 2,239 Bitcoin have been deposited, while at the above-mentioned address traces of 2,871 coin emerge as the balance.
We do not yet know exactly how many of these coins have actually been sold for dollars and how many are about to be liquidated in the coming hours.
The first refunds to creditors begin on Bitstamp
This news follows the recent statement from July 5th in which Mt. Gox announced that it had established plans to make reimbursements in Bitcoin.
On that occasion, the Trustee of the exchange, tasked with managing the assets held in trust in the interest of the beneficiaries, initiated the procedures to promptly repay the creditors.
In total, 5 different brokers are collaborating with Mt. Gox to offer support and facilitate refunds to users of the now-defunct exchange. Among these stands out Bitstamp, to which some deposits in Bitcoin were made this morning.
According to Arkham data, Mt. Gox has already executed the first test transactions as of yesterday, sending small amounts in crypto to 5 different Bitstamp addresses.
The last one was processed this morning before the transfer of 2,239 Bitcoin in which the cold wallet of the exchange was funded with 0.02 BTC as a test.
Overall, approximately 127,000 users have been waiting for over 10 years to recover their funds in Bitcoin, worth 9.4 billion dollars.
Approximately 750,000 BTC from customers, which at the time were worth around 400 million dollars, have now increased in value by over 8,500%, without anyone being able to effectively take profit. Now these coins could finally be sold soon, even though the same creditors will not receive the nominal value of the BTC held at the time of the bankruptcy, but more or less the equivalent value in yen of that time.
According to financial analyst Jacob King, most of the Bitcoin that Mt. Gox is moving will be gradually unloaded from now on.
This undoubtedly causes significant selling pressure. These are his words in a recent post on X
“99% of those on Mt. Gox will sell their coins the moment they receive them. Imagine billions of Bitcoin being gradually dumped over the next few weeks. There is no way to spin this to be bull, or news that could offset this.”
Every sale of Mt. Gox is one less problem for Bitcoin
It is clear that while the crypto community trembles at reading the news involving 3.2 billion dollars in Bitcoin, Mt. Gox is slowly deflating, becoming less and less “dangerous”.
With the latest movement of crypto asset, the Trustee has moved a total of over 12 billion dollars since it has been operational.
At the moment its reserves amount to 90,344 BTC for a value of 6 billion dollars, while at the beginning of July the total was over 140,000 BTC.
Since July 17, we already count a sum equal to 36% of the total that has already been distributed to the creditors of the platform. As Mt. Gox gradually liquidates its stakeholders, the impact that this entity could have on the market is reduced. For years the exchange has been seen as a black swan that could have created heavy conditions of volatility in the market.
Now finally this plague is about to end, and in the meantime Bitcoin still seems strong graphically, with a +6% in the last 7 days.
In all this, it should be noted that while some traders have revealed concerns about the sales of Mt. Gox, there are those who have a less dramatic view.
In fact, according to Galaxy Research, it is likely that a significant portion of the distributed Bitcoin will not be sold immediately, reducing the potential negative impact on the market.
Many creditors made a deal by purchasing the coins in 2017 at low prices, so they might not be interested in liquidating them in the middle of a bull market.
In support of this thesis, according to a survey conducted on Reddit, it emerged that only 20% of creditors would intend to sell their Bitcoin immediately.