Mt. Gox, the defunct exchange, has completed a significant Bitcoin transaction amounting to approximately $3.2 billion as part of its repayment process to creditors who are collectively owed $9 billion in Bitcoin. On a recent Tuesday at 5 a.m. UTC, a Mt. Gox-associated wallet transferred 42,587.49 BTC, valued at around $2.82 billion, to a new address. Concurrently, 5,110.16 BTC was sent to a cold storage address for safekeeping, while 2,238.87 BTC, equivalent to about $150 million, was moved to Bitstamp, indicating the potential initiation of Bitcoin repayments by Bitstamp to affected users.
Repayment Progress and Investor Concerns
The repayment plan, announced on July 5, is progressing as scheduled. Test transactions have been conducted, with a significant test performed on July 22, transferring Bitcoin to Bitstamp's cold wallets. However, some investors worry about the market impact of releasing a large amount of Bitcoin, fearing a downward pressure on its price. Finance analyst Jacob King expressed concern that a substantial portion of creditors may sell their Bitcoin upon receipt, potentially flooding the market and lowering prices. Contrary to these concerns, a recent survey on Reddit shows that a majority of respondents plan to hold onto their Bitcoin rather than selling.
Exchange Distribution and Market Response
Kraken, one of the selected exchanges for Bitcoin distribution, informed customers via email that repayments will be processed within seven to fourteen days. Bitstamp, another key player, aims to start distributions promptly instead of waiting for the full 60 days. Over 20,000 former Mt. Gox customers will benefit from these distributions. Kraken and Bitbank are expected to handle around 13,000 customers' repayments, with the rest managed by three other exchanges. Most creditors are likely to receive their repayments by early August.
Mt. Gox, previously the world's largest Bitcoin exchange, ceased operations in 2014 following a massive hack that resulted in the theft of 850,000 Bitcoin, now valued at over $57 billion. The ongoing repayment process seeks to address the losses suffered by users during the collapse of the exchange. The news of the transaction caused a 1.2% drop in Bitcoin's price.
