Mt. Gox, the collapsed cryptocurrency exchange, has transferred $9.62 billion worth of Bitcoin into a new wallet named “1Jbez.” This move has raised hopes among the exchange’s creditors who have been unable to access their funds since 2014 when Mt. Gox halted trading and withdrawals. The consolidation of 141,686 BTC from various cold wallets associated with Mt. Gox is seen as a potential indication that creditors 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. Anndy Lian, an intergovernmental blockchain expert and author, believes that the near $10 billion Bitcoin consolidation suggests Mt. Gox’s intention to repay its users. However, there is a possibility of further delays as the current deadline was originally set in September 2023, a month before the initial repayment schedule of October 31, 2023.
More than $9.4 billion worth of Bitcoin is owed to Mt. Gox’s 127,000 creditors who have waited for over a decade to recover their funds since the exchange’s collapse in 2014 due to multiple undetected hacks. Mt. Gox was once a prominent cryptocurrency exchange, facilitating over 70% of all trades within the blockchain ecosystem. However, it faced a major hack in 2011, leading to its eventual collapse in 2014 and the loss of 850,000 BTC, impacting approximately 24,000 creditors.
Following the first batch of Mt. Gox transfers, the price of Bitcoin experienced a 2% dip on May 28, falling below $67,500 before recovering to just above $68,000. This dip in price could signify that the market is pricing in the potential repayment by Mt. Gox. Lian believes that despite the slight price decrease, a potential repayment would address one of the longstanding issues in the crypto industry.
Overall, the movement of funds by Mt. Gox into a new wallet has generated optimism among creditors, indicating the possibility of repayment after years of waiting. The crypto market has also reacted to this development, with Bitcoin experiencing a temporary dip in price.