Mt Gox Moved 44,527 Bitcoin to a New Wallet in Preparation for Creditor Repayments

Crypto exchange gone In preparation for paying back its creditors, Mt. Gox moved 44,527.5 Bitcoin (BTC) to another cryptocurrency exchange.

Bankrupt crypto exchange Mt. Gox has moved 44,527.5 Bitcoin (BTC) to another crypto exchange, as per preparation to pay back its creditors, who lost money in the 2014 hack.

Significant BTC Transfer by Mt Gox to New Wallet

After announcing that it will begin repaying creditors, the crypto exchange has seen price swings in recent weeks. Some users are expecting the compensation, and on-chain data from blockchain analytics firm Arkham suggests that Mt Gox made two Bitcoin transfers.

The initial transfer test involved sending 0.021 BTC to a wallet. Afterward, an internal wallet received 44,527 BTC, almost $2.84 billion, from the exchange-linked wallet. The wallet has now received 47,229 more BTC in flows.

As the exchange prepares to disperse the funds owed by creditors, the first steps are being marked by a test transfer. The wallet has 138,985 BTC, or $8.87 billion, in it as of now.

Similarly, on July 4, on-chain data showed that a wallet linked to Mt. Gox moved 47,000 Bitcoin, valued at approximately $2.7 billion, to another wallet, followed by two additional transfers. Bitbank received 1,544 BTC, or about $84 million, while a new wallet received 1,200 BTC, or around $64 million.

As per Coingape, the community’s first move is to wait for the reimbursement, which should cause a surge in sales. The strain expected in several quarters might be lessened, though, by the gradual repayment. Some analysts also predict that institutional investors will buy up a lot of assets when the market recovers, which bodes well for optimistic activity.

The exchange will gradually refund investors who lost money due to the Mt. Gox hack by distributing 142,000 Bitcoin.

Market Reactions to Mt Gox Repayment Plans

Prior to the conclusion of the civil lawsuit case, the creditors who consented to a 10% reduction of their shares received the current payment. According to CoinShares, 75,000 BTC is expected to hit the market, which could lead to negative sentiment.

The responsibility of redistribution has been assigned to five companies: Bitgo, Kraken, Bitstamp, SBI VC Trade, and Bitbank. It has already been reported that Bitbank received the funds.

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