BitGo, the fifth and final crypto exchange collaborating with the Mt. Gox Trustee, has initiated on-chain Bitcoin transactions in preparation for creditor repayments.

On August 12, BitGo’s wallet, labeled “bc1q26,” transferred 33,105 Bitcoin, worth around $2 billion, as per Arkham’s data tracking Mt. Gox cryptocurrencies. Observers noted this move following an earlier test transaction by BitGo, a common practice in web3 to verify the destination wallet and prevent asset loss.

BitGo’s BTC transfer is likely the final step before Mt. Gox users receive updated BTC balances. Both Kraken and Bitstamp have undergone similar processes during creditor distributions. To date, Mt. Gox has settled less than $6 billion of user reimbursements. The now-defunct BTC exchange plans to repay $9 billion in crypto following multiple hacks between 2011 and 2014.

“BREAKING: Bitgo has just moved $2B of Mt. Gox BTC.”

Approximately 20,000 creditors expect to receive Bitcoin and other cryptocurrencies in the coming days and weeks. A Tokyo bankruptcy court has set October 2024 as the deadline for the platform’s Trustee to execute its repayment plan.

After transferring funds to five crypto custodians, Mt. Gox still holds over $3 billion in BTC. This remaining amount is also expected to be disbursed to users.

Further Mt. Gox repayments and potential user selloffs could increase volatility and trigger short-term BTC price fluctuations. As of now, the leading cryptocurrency is trading at $59,500, down less than 1%, while the broader digital asset market has dropped to $2.18 trillion.

For more updates on this and other cryptocurrency news, stay tuned to Global Crypto News.

Post Views: 5