Known as the Bitcoin nightmare, the Mt. Gox incident has reached its resolution, leading to the initiation of Bitcoin and Bitcoin Cash (BCH) refunds. The board of trustees of Mt. Gox recently announced that the refund process will commence at the start of July. Following the eagerly anticipated moment, Mt. Gox conducted test transfers of small amounts to various wallets just before a substantial $9 billion Bitcoin payment was executed. According to Arkham data, around $24 worth of BTC was transferred to Bitbank's hot wallet through small transactions originating from Mt. Gox wallets.
While speculation persists whether these transactions are solely trial runs in preparation for the transfer of larger sums, the purpose behind these transactions remains veiled. Bitbank stands as one of the designated exchanges where Mt. Gox refunds will be executed, as the refunds will not be directly disbursed to Bitcoin holders. Instead, the Mt. Gox trustees will distribute BTC/BCH to five exchanges: Kraken, Bitstamp, SBI VC Trade, Bitbank, and Bitgo. These exchanges, in turn, will relay the funds to their customers within varying timelines of up to 90 days after receipt.
The price of Bitcoin plummeted by over 18% in the past month due to the anticipated selling pressure ahead of Mt. Gox funds repayment to creditors. Today, BTC declined below $57,000 for the first time since early May, experiencing a 5.5% drop in the last 24 hours and currently trading at $56,955. The Mt. Gox wallet holds 141,687K Bitcoins, valued at $8 billion based on prevailing market rates.
*Disclaimer: This content does not constitute investment advice.
