Collapsed cryptocurrency exchange Mt. Gox has transferred $9.62 billion worth of Bitcoin into a new wallet, raising hopes among creditors who have been unable to access their funds since 2014. The 141,686 Bitcoin was consolidated into wallet “1Jbez” from several other cold wallets associated with Mt. Gox. This move is seen as a potential indication that creditors might finally be repaid. It is the first on-chain movement of funds from the exchange in over five years and is in line 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 that Mt. Gox is planning to repay its users. Mt. Gox rehabilitation trustee Nobuaki Kobayashi has confirmed that the consolidation is part of the exchange’s plans to start repaying creditors, although he did not mention 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 repayment date of October 31, 2023.
Over $9.4 billion worth of Bitcoin is owed to Mt. Gox’s 127,000 creditors, who have been waiting for over 10 years to recover their funds after the exchange collapsed in 2014. Mt. Gox was once one of the largest cryptocurrency exchanges, facilitating over 70% of all trades within the blockchain ecosystem. Following a major hack in 2011, the site collapsed in 2014, resulting in the loss of 850,000 BTC and affecting about 24,000 creditors.
The first batch of Mt. Gox transfers caused a 2% dip in the price of Bitcoin on May 28, but it quickly recovered. This dip could be a sign that the market is anticipating a potential repayment by Mt. Gox. Lian believes that a potential repayment would resolve one of the long-standing issues of the crypto industry.