Collapsed cryptocurrency exchange Mt. Gox has transferred $9.62 billion worth of Bitcoin into a new wallet called “1Jbez,” giving hope to creditors who have been unable to access their funds since 2014. The 141,686 Bitcoin was consolidated from various other cold wallets associated with Mt. Gox. This movement of funds is seen as a potential indication that users may finally be repaid. It is the first on-chain transfer from the exchange in over five years and aligns with Mt. Gox’s plans to repay creditors by the end of October 2024.
According to Anndy Lian, an intergovernmental blockchain expert and author, the consolidation of nearly $10 billion worth of Bitcoin suggests that Mt. Gox intends to repay its users. However, there may be further delays as the current deadline was set in September 2023, a month before the original repayment date of October 31, 2023.
Mt. Gox owes over $9.4 billion worth of Bitcoin to its 127,000 creditors who have been waiting for over a decade to recover their funds. The exchange collapsed in 2014 after being hacked multiple times, resulting in the loss of 850,000 BTC and affecting thousands of creditors. At its peak, Mt. Gox facilitated over 70% of all trades within the cryptocurrency ecosystem.
Following the recent transfers from Mt. Gox, the price of Bitcoin dipped 2% on May 28, reaching a daily low below $67,500 before recovering to just above $68,000. This dip could indicate that the market is pricing in the potential repayment by Mt. Gox. Lian believes that a repayment would address one of the long-standing issues in the crypto industry.
In summary, Mt. Gox’s movement of $9.62 billion worth of Bitcoin into a new wallet raises hopes of repayment for its creditors. The transfers are in line with the exchange’s plans to repay creditors by October 2024. The market’s reaction to the transfers suggests that there is anticipation of a potential repayment.