Mt. Gox Moves $2.4 Billion in Bitcoin After BTC Surges Past $100K

The long-bankrupt crypto exchange Mt. Gox has moved over 24,000 Bitcoin—worth nearly $2.5 billion—to an unknown address on December 5, following Bitcoin’s surge above $100,000.

The Transfer Details

According to Arkham Intelligence, the transfer involved 24,051 BTC, which was sent to an address starting with “1N7j” and had no previous transaction history. The transfer occurred at 2:45 AM UTC on December 5, just 12 minutes after Bitcoin crossed the $100,000 mark. Bitcoin then continued its upward trajectory, peaking at $104,000 on Coinbase less than half an hour later, at 3:08 AM UTC, according to data from TradingView.

This marks the first time Mt. Gox has moved funds since November 12, raising questions about the potential implications of such a large transaction.

Why the Transfer Matters

Mt. Gox, once the largest Bitcoin exchange in the world, filed for bankruptcy in early 2014 following a massive hack that resulted in the loss of 850,000 BTC. Since then, the Mt. Gox bankruptcy trustee has been working on compensating creditors, many of whom have been waiting for years to reclaim their funds.

The recent transfer of 24,051 BTC is significant because it could be part of the ongoing effort to pay out Mt. Gox’s creditors. Historically, when large amounts of Bitcoin have been moved by the exchange, it has been seen as a precursor to payouts being made to its creditors.

The Potential Market Impact

The timing of the transfer, coming shortly after Bitcoin’s price exceeded $100,000, has raised concerns about potential market sell-offs. Large amounts of Bitcoin moving from a dormant address to an active one can often signal that the holders may look to liquidate their assets, which could put downward pressure on Bitcoin’s price. Many fear that creditors, who have not had access to their Bitcoin for over a decade, might decide to sell their holdings, adding to market supply.

However, some analysts argue that the market has already priced in the Mt. Gox payouts, as the repayment process has been in the works for years. In fact, when Mt. Gox creditors were polled on platforms like Reddit in July, many indicated they were not in a rush to sell their Bitcoin. This suggests that the potential sell-off may not be as dramatic as some anticipate.

Mt. Gox’s Remaining Bitcoin Holdings

Following this latest transfer, Mt. Gox still holds approximately 39,878 BTC, which is currently valued at around $4.1 billion. This massive remaining balance, along with the continued efforts to repay creditors, means that the repayment process could stretch on for some time.

In October 2024, the Mt. Gox trustee extended the deadline for creditor repayments to October 31, 2025, giving creditors an additional year to complete the necessary procedures for receiving their funds. According to the trustee, many creditors still haven’t completed the necessary steps to claim their Bitcoin.

What’s Next?

While the Mt. Gox repayment process is far from over, the recent Bitcoin transfer highlights the ongoing complexity and uncertainty surrounding the exchange’s assets. The movement of over 24,000 BTC could be the beginning of a new phase in the long-awaited distribution to creditors. However, the impact on Bitcoin’s price remains to be seen, and many market observers are watching closely to see how the situation unfolds in the coming months and years.