Mt. Gox Prepares for Repayments via Bitstamp, Testing Transactions Already Conducted
Mt. Gox, one of the most infamous Bitcoin exchange platforms due to its bankruptcy in 2014, is preparing to reimburse new creditors through the crypto exchange Bitstamp.
This initiative marks a significant step in a decade-long repayment process. According to Arkham Intelligence, the first test transactions have already been conducted to Bitstamp’s cold wallets, indicating that preparations are nearing completion. These test transactions, ranging from 1 to 4 dollars, were identified on July 22, highlighting Bitstamp as one of the five exchanges working with Mt. Gox’s trustee to facilitate these repayments.
Tweet:
THIS MORNING: MT GOX MOVING FUNDS
Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments.
Mt. Gox currently holds: $6.08B in BTC
These transfers are likely to… pic.twitter.com/uyOLL7O065
— Arkham (@ArkhamIntel) July 22, 2024
Amount of Repayments and Concerns About Selling Pressure
With over 9.4 billion dollars of Bitcoin owed to approximately 127,000 creditors, the potential impact of these repayments on the crypto market is raising concerns. Some analysts fear that this massive injection of BTC into the market could exert new downward pressure on the price of Bitcoin.
A massive and gradual sale of billions of dollars worth of Bitcoin is unlikely to be seen as bullish for the market.
However, a Reddit community poll offers a different perspective: about 56% of creditors intend to hold onto their BTC, while only 20% consider selling.
Current Distribution and Behavior of Bitcoin Whales
As of July 17, more than 36% of the Bitcoins owed to creditors have already been distributed. Despite this progress, Bitcoin whales seem unfazed by the prospect of increased selling pressure, with recent BTC accumulations by the largest holders.
The Mt. Gox-labeled wallets currently hold over 90,300 BTC, valued at approximately 6.12 billion dollars. The recent test transactions suggest that the resumption of repayments is imminent, but the exact date remains unclear.
