Mt. Gox Transfers Over $1 Billion in Bitcoin, Sparks Market Movement

Mt. Gox Transfers Over $1 Billion in Bitcoin

In a significant development, the defunct cryptocurrency exchange Mt. Gox has transferred 11,834 BTC, valued at approximately $1.07 billion, to a new wallet. This move is believed to be part of an internal process, possibly related to ongoing creditor reimbursement efforts.

Background on Mt. Gox

Mt. Gox, once a leading Bitcoin exchange, infamously went bankrupt in 2014 after suffering massive security breaches that resulted in the loss of 840,000 BTC, worth around $450 million at the time. The platform, originally founded by Jed McCaleb (co-founder of Ripple and Stellar), was later acquired by Mark Karpeles, who became its CEO.

Creditor Reimbursement Progress

In June 2024, Mt. Gox announced plans to begin compensating its creditors, initiating a process that involved transferring Bitcoin to centralized exchanges in the U.S. and Europe for distribution. While payouts were initially expected to conclude in October 2024, unforeseen delays pushed the timeline back by a full year.

Recent Bitcoin Transfers

This latest transfer of 11,834 BTC follows a series of earlier movements. Notably, in December 2023, Mt. Gox moved 1,620 BTC (valued at $172.5 million) and later $49.3 million worth of Bitcoin on December 23. As of now, Mt. Gox still holds 24,245 BTC across several wallets, equivalent to approximately $2.19 billion.

Bitcoin Price Surges

The cryptocurrency market has responded positively to these developments, with Bitcoin experiencing a significant price rally. Over the past 24 hours, Bitcoin has regained over 12%, climbing from $88,250 to a high of $92,750 before stabilizing at $91,220 at the time of writing. This recovery marks a strong rebound, with Bitcoin regaining 10.29% of its value since Tuesday.

The movement of such a large amount of Bitcoin by Mt. Gox, coupled with Bitcoin's recent price surge, has sparked renewed interest and speculation in the cryptocurrency community.