bitcoin worth more than $855 million was transferred from Mt. Gox to unidentified wallets on Wednesday, as reported by data from Arkham. The movement comprised two significant transactions: one for $74 million to a known Mt. Gox cold storage wallet and another for $784.2 million to an unknown wallet address. These funds have remained untouched since their transfer.
Mt. Gox, the defunct crypto exchange, has been undergoing the process of repatriating funds to its creditors following its collapse in 2014. The recent massive transfers highlight a crucial phase in this ongoing rehabilitation plan.
Bitgo's Role in Mt. Gox Payouts
Bitgo, a prominent player in the crypto custody space, has commenced its final preparations for distributing Mt. Gox assets. The wallet managed by Bitgo, holding 33,105 bitcoin, initiated a test transaction after a two-week dormancy period. This move signifies Bitgo's pivotal involvement in returning funds to Mt. Gox creditors, positioning it as the concluding entity among five platforms assisting the trustee in this complex process.
The activity from the Bitgo-managed wallet indicates that the platform is reaching the conclusive stages of preparing to disburse the remaining assets to Mt. Gox creditors.
Mt. Gox Distributions and Market Impact
As the distribution of Mt. Gox assets nears completion, the transfers hold significant implications for creditors and the wider market. To date, a total of $5.77 billion in bitcoin has been distributed to various exchanges. This monumental sum has translated into substantial returns for creditors, with individuals who previously possessed $1,000 in bitcoin at the time of Mt. Gox's collapse now owning assets valued at over $110,000 due to these distributions.
Despite concerns about a potential market upheaval stemming from the Mt. Gox distributions, the crypto market has remained resilient. Contrary to expectations of a significant sell-off, prices have held steady with bitcoin trading up 0.6% at approximately $59,403 on the day of the transfers.
