Mt. Gox moves $9.6B worth of Bitcoin—are creditors finally receiving repayments?

Collapsed cryptocurrency exchange Mt. Gox transferred $9.62 billion worth of Bitcoin into a new wallet, raising hopes among creditors. The 141,686 Bitcoin (BTC) was consolidated into the wallet “1Jbez” from various other cold wallets linked to Mt. Gox.

These transfers suggest that users, who have been unable to access their funds since 2014 when Mt. Gox suspended trading and withdrawals, might finally be repaid. This marks the first on-chain movement of funds from the exchange in over five years and aligns with Mt. Gox’s plans to repay creditors by October 2024.

Blockchain expert Anndy Lian noted this as a significant step toward distributing assets back to creditors. However, the current repayment deadline could face further delays, having already been postponed from October 2023.

Mt. Gox owes over $9.4 billion worth of Bitcoin to around 127,000 creditors who have been waiting for over a decade after the exchange collapsed in 2014 following multiple hacks.

Once a major cryptocurrency exchange handling over 70% of all blockchain trades, Mt. Gox collapsed after a 2011 hack, affecting about 24,000 creditors and losing 850,000 BTC.

Following the first batch of transfers, Bitcoin’s price dipped 2% on May 28 to a low below $67,500 before recovering slightly. This price movement suggests markets are anticipating potential selling pressure from creditors upon repayment.

Despite the slight dip, Lian emphasized that resolving this long-standing issue would be a significant milestone for the crypto industry.

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