Mt. Gox Transfers $700 Million in Bitcoin, Barely Moves in Crypto Market

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Defunct cryptocurrency exchange Mt. Gox transferred 13,265 Bitcoins worth $784 million, marking its first major activity on the chain since late July.

An address associated with Mt. Gox moved 12,000 BTC (valued at $709 million) to an empty wallet starting with “1PuQB,” according to blockchain analytics firm Arkham Intelligence. The remaining 1,265 BTC, worth about $75 million, was sent to an address labeled as the Mt cold wallet. Gox.

This significant move has sparked speculation about the potential distribution of Bitcoin to creditors who have been waiting for repayment since the stock market crashed in 2014. However, Alex Thorn, head of research at Galaxy Digital, suggests that the impact on the markets may be limited.

“We now believe that of the 13,265 BTC moved into this tx, only 1,265 ($74.5M) are meant to be distributed, with 12,000 for fresh cold storage, so very little,” Thorn said.

Bitcoin price remained relatively stable following the trades, holding above $59,000 according to data from CoinGecko. This weak market reaction contrasts with previous instances where selling pressure related to Mt. Gox affected the price of BTC after announcing the start of distributions in June.

The last major Bitcoin move by Mt. Gox occurred on July 30, when he transferred 47,229 BTC to three unknown wallets over a three-hour period. At the time, Arkham Intelligence suspected that 33,105 Bitcoins were sent to an address owned by crypto custodian BitGo, which works with Mt. Gox Trustee to return funds to creditors.

The exchange still holds a substantial amount of 46,164 BTC worth about $2.7 billion. Interestingly, lenders Mt. Gox appear to be keeping the regained Bitcoin rather than selling it immediately.

The rehabilitation administrator of Mt. Gox announced in July 2024 that distribution of Bitcoin and Bitcoin Cash would begin to approximately 127,000 creditors owed more than $9.4 billion. The collapse of the exchange in 2014 was attributed to several undetected hacks that resulted in the loss of over 850,000 BTC, now valued at over $51.9 billion.

While recent moves signal progress in the long-awaited refund process, the saga of Mt. Gox continues to be relevant in crypto history, despite seeing its last few years as it winds down with refunds. The exchange’s ability to move substantial amounts of Bitcoin without having a dramatic impact and barely escaping the market shows the maturity and growing liquidity of the crypto ecosystem.

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