The Rehabilitation Trustee of the defunct crypto exchange Mt. Gox has made a statement confirming that it has not sold its significant Bitcoin holdings. Despite transferring over 140,000 BTC (approximately $10 billion), the trustee clarified that preparations to repay creditors were ongoing. The firm mentioned that the bankruptcy process will compensate creditors with fiat currency, Bitcoin, and Bitcoin Cash. While fiat currency payments have already started, digital asset payments to creditors have yet to be made. The Rehabilitation Trustee assured that Bitcoin and Bitcoin Cash are being managed in a secure manner as they proceed with the repayment preparations.
Former Mt. Gox CEO Mark Karpeles explained that the recent transactions were part of the distribution process. He noted that the trustee was moving coins to a different wallet in preparation for the distribution expected to take place within the year. Karpeles emphasized that there was no imminent sale of bitcoins happening, alleviating concerns about a sudden market flood of the cryptocurrency. The community observed multiple transactions from wallets associated with the failed Mt. Gox exchange, raising speculations about impending repayments.
Blockchain analytics platform Arkham Intelligence reported that 72 Mt. Gox-linked wallets sent 141,686 BTC in batches to a new wallet, which received its first transaction of $3.65 on May 20. Subsequently, the new address transferred a substantial amount of BTC to other wallets, sparking discussions about Mt. Gox potentially initiating repayments. In addition, Mt. Gox-related addresses moved a significant amount of BCH to an unmarked address, leading to further speculation within the community. Alex Thorn, the Head of Research at Galaxy Digital, suggested that these transactions could mark the beginning of distributions to creditors. However, the market responded to the news, with Bitcoin’s price facing a slight decline below $69,000 as of press time.
The Mt. Gox Trustee’s decision not to sell its Bitcoin holdings despite transferring a considerable amount demonstrates a commitment to repay creditors. The ongoing preparations for repayments in fiat currency, Bitcoin, and Bitcoin Cash indicate a step towards resolving the aftermath of the exchange’s collapse. While the recent transactions have sparked speculation and market fluctuations, they also signal progress towards addressing the long-standing issue of compensating Mt. Gox creditors.
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