Mt. Gox Tests Transactions to Cold Wallets Ahead of Creditors Repayments via Bitstamp
Mt. Gox, the infamous Japanese Bitcoin exchange that collapsed in 2014, has begun final preparations to repay its creditors as it executes test transactions. This move marks a significant milestone in a decade-long journey marred by legal battles and recovery efforts.
The repayment process, facilitated through the Bitstamp exchange, involves distributing over $9.4 billion worth of Bitcoin and Bitcoin Cash to approximately 127,000 creditors.
Mt. Gox Initial Test Transactions
THIS MORNING: MT GOX MOVING FUNDS
Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments.
Mt. Gox currently holds: $6.08B in BTC
These transfers are likely to… pic.twitter.com/uyOLL7O065
— Arkham (@ArkhamIntel) July 22, 2024
Recently, the address associated with Mt. Gox executed the first test transactions to Bitstamp’s cold wallets.
Blockchain intelligence firm Arkham Intelligence flagged these movements on July 22, noting that Mt. Gox addresses deposited $1 to four separate Bitstamp deposit addresses.
This step signals the imminent start of the repayment process, as Bitstamp is one of five exchanges collaborating with the Mt. Gox Trustee to facilitate these repayments.
Mt. Gox, once the largest Bitcoin exchange globally, collapsed in 2014 after losing 850,000 BTC due to a massive hack. This event triggered years of legal proceedings and efforts to recover the lost assets.
In 2018, approximately 200,000 Bitcoins were recovered, initiating a lengthy rehabilitation process under a court-appointed trustee. Creditors have since been awaiting compensation, facing multiple delays that have tested their patience.
The repayment process involves distributing more than $9.4 billion worth of Bitcoin owed to the creditors who have waited for over a decade. The recent test transactions aim to ensure the accuracy of the repayment process before larger sums are transferred.
However, there are significant concerns about the potential market impact. Some investors fear that the large-scale repayments could introduce substantial sell pressure on Bitcoin’s price, currently around $66,793.
Progress in Distribution and Whale Activity
In June, the exchange’s trustee, Nobuaki Kobayashi, assured creditors that repayment preparations were finalized and would begin in early July, per the plan.
The total disbursement is expected to include 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion yen by October 2024.
Initial reports emerged on the Mt. Gox insolvency Subreddit around mid-April, with users highlighting details about expected payments in their account’s repayment data table.
Additionally, some creditors reported successful receipts of fiat currencies in their bank accounts, while others also reported receiving Bitcoin cash.
This is what few understand.
I’d say 99% of those on Mt. Gox are going to sell their coins the moment they get it.
Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks. There is no way to spin this to be bullish, or news that could offset…
— Jacob King (@JacobKinge) July 4, 2024
Finance analyst Jacob King expressed these concerns, predicting that up to 99% of creditors might liquidate their holdings upon receipt.
“Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks,” he warned.
Despite this, a Reddit community poll suggests a different scenario. 56% of Mt. Gox creditors intend to hold their Bitcoin, while only about 20% plan to sell, indicating a potential variation in market impact.
The timing for resuming Mt. Gox repayments remains uncertain. However, today’s test transactions indicate that the final preparations are underway, with Bitstamp set to play a crucial role in the forthcoming repayment phase.
The post Mt. Gox Tests Transactions to Cold Wallets Ahead of Creditors Repayments via Bitstamp appeared first on Cryptonews.
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Mt. Gox Tests Transactions to Cold Wallets Ahead of Creditors Repayments via Bitstamp
Mt. Gox, the infamous Japanese Bitcoin exchange that collapsed in 2014, has begun final preparations to repay its creditors as it executes test transactions. This move marks a significant milestone in a decade-long journey marred by legal battles and recovery efforts.
The repayment process, facilitated through the Bitstamp exchange, involves distributing over $9.4 billion worth of Bitcoin and Bitcoin Cash to approximately 127,000 creditors.
Mt. Gox Initial Test Transactions
THIS MORNING: MT GOX MOVING FUNDS
Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments.
Mt. Gox currently holds: $6.08B in BTC
These transfers are likely to… pic.twitter.com/uyOLL7O065
— Arkham (@ArkhamIntel) July 22, 2024
Recently, the address associated with Mt. Gox executed the first test transactions to Bitstamp’s cold wallets.
Blockchain intelligence firm Arkham Intelligence flagged these movements on July 22, noting that Mt. Gox addresses deposited $1 to four separate Bitstamp deposit addresses.
This step signals the imminent start of the repayment process, as Bitstamp is one of five exchanges collaborating with the Mt. Gox Trustee to facilitate these repayments.
Mt. Gox, once the largest Bitcoin exchange globally, collapsed in 2014 after losing 850,000 BTC due to a massive hack. This event triggered years of legal proceedings and efforts to recover the lost assets.
In 2018, approximately 200,000 Bitcoins were recovered, initiating a lengthy rehabilitation process under a court-appointed trustee. Creditors have since been awaiting compensation, facing multiple delays that have tested their patience.
The repayment process involves distributing more than $9.4 billion worth of Bitcoin owed to the creditors who have waited for over a decade. The recent test transactions aim to ensure the accuracy of the repayment process before larger sums are transferred.
However, there are significant concerns about the potential market impact. Some investors fear that the large-scale repayments could introduce substantial sell pressure on Bitcoin’s price, currently around $66,793.
Progress in Distribution and Whale Activity
In June, the exchange’s trustee, Nobuaki Kobayashi, assured creditors that repayment preparations were finalized and would begin in early July, per the plan.
The total disbursement is expected to include 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion yen by October 2024.
Initial reports emerged on the Mt. Gox insolvency Subreddit around mid-April, with users highlighting details about expected payments in their account’s repayment data table.
Additionally, some creditors reported successful receipts of fiat currencies in their bank accounts, while others also reported receiving Bitcoin cash.
This is what few understand.
I’d say 99% of those on Mt. Gox are going to sell their coins the moment they get it.
Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks. There is no way to spin this to be bullish, or news that could offset…
— Jacob King (@JacobKinge) July 4, 2024
Finance analyst Jacob King expressed these concerns, predicting that up to 99% of creditors might liquidate their holdings upon receipt.
“Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks,” he warned.
Despite this, a Reddit community poll suggests a different scenario. 56% of Mt. Gox creditors intend to hold their Bitcoin, while only about 20% plan to sell, indicating a potential variation in market impact.
The timing for resuming Mt. Gox repayments remains uncertain. However, today’s test transactions indicate that the final preparations are underway, with Bitstamp set to play a crucial role in the forthcoming repayment phase.
The post Mt. Gox Tests Transactions to Cold Wallets Ahead of Creditors Repayments via Bitstamp appeared first on Cryptonews.
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