Bankrupt cryptocurrency exchange Mt. Gox is set to pay 142,000 bitcoins to creditors before October this year. Meanwhile, Mt. Gox’s cold wallet address transferred over 140,000 bitcoins to an unknown address this morning, indicating preparations for the reimbursement process. At the same time, bitcoin has experienced significant volatility.
Summary:
Screenshot of Mt. Gox preparing to repay 140,000 bitcoins leaked, will bitcoin crash?
Background:
Worst exchange Mt. Gox repaying $9.5 billion in bitcoins, K33 Research warns of potential BTC sell-off.
Table of Contents:
Mt. Gox transfers all 140,000 bitcoins from cold wallet
Bitcoin drops below $67,500
Potential BTC sell-off?
Cryptocurrency exchange Mt. Gox filed for bankruptcy in 2014 after losing 850,000 bitcoins to hacking. Now, after 10 years, the reimbursement process is accelerating, with Mt. Gox expected to pay a total of 142,000 bitcoins, 143,000 BCH, and 69 billion yen to creditors before October this year.
Starting this month, Reddit users have been revealing that MtGox’s Kraken BTC and BCH payment APIs show “Payment in Preparation,” with an update date of May 13, indicating that Kraken is preparing for payment, and creditors may soon receive BTC and BCH repayments.
Earlier today, Arkham Intelligence monitoring discovered that Mt. Gox’s cold wallet transferred all 141,686 bitcoins through multiple transactions to an unknown wallet address, 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6, worth approximately $9.61 billion.
Currently, there have been no further transfers from the bitcoins sent to 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6.
Before receiving a large amount of bitcoins today, wallet address 1Jbez… received small amounts of bitcoins from two addresses on May 20th and 28th. The funds from these two addresses originated from a CoinJoin mixer address.
Although there have been no further transfers from the bitcoins sent to the 1Jbez… wallet, BTC experienced a significant drop at almost the same time, reaching a low of $67,485 before the deadline, a drop of over 4% within 12 hours.
Over the past 10 years, bitcoin’s price has increased more than tenfold. Market concerns arise that once over 140,000 bitcoins are returned to investors, it may cause short-term selling pressure and bring volatility to the bitcoin market.
In a previous report, cryptocurrency company K33 Research stated that Mt. Gox’s repayment of 142,000 bitcoins and 143,000 BCH, this substantial cryptocurrency repayment, “may become a significant factor affecting price drops in the coming weeks.”
K33 Research pointed out that while creditors are unlikely to collectively sell their received funds, this expectation may encourage market participants to exercise caution and avoid taking risks before the event:
Related Reports:
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140,000 bitcoins being liquidated? Mt. Gox creditors receive yen compensation, repayment deadline extended to October 2024.