Mt. Gox, the collapsed cryptocurrency exchange, has transferred $9.62 billion worth of Bitcoin into a new wallet called “1Jbez.” This move has raised hopes among creditors who have been unable to access their funds since 2014 when Mt. Gox suspended trading and withdrawals. It is seen as a potential indication that they might finally be repaid.
These transfers mark the first movement of funds from the exchange in over five years and align 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 in Bitcoin suggests that Mt. Gox intends to repay its users. Lian stated that this development is significant for the crypto industry.
Mt. Gox rehabilitation trustee, Nobuaki Kobayashi, confirmed that the consolidation is part of the exchange’s plans to start repaying creditors. However, he did not specify when the repayments will begin. There is a possibility of further delays as the current deadline was set in September 2023, a month before the original scheduled 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 10 years to recover their funds after the exchange’s collapse in 2014 due to multiple unnoticed hacks.
Once a prominent cryptocurrency exchange, Mt. Gox facilitated more than 70% of all trades within the blockchain ecosystem. However, it suffered a major hack in 2011 and eventually collapsed in 2014, resulting in the loss of 850,000 BTC and affecting around 24,000 creditors.
Following the recent transfers from Mt. Gox, the price of Bitcoin dipped 2% on May 28 but later recovered. This dip could be a reflection of the markets anticipating a potential repayment by Mt. Gox.
Overall, if Mt. Gox follows through with its plans to repay creditors, it would address one of the longstanding issues in the crypto industry.