Mt. Gox moves nearly $2.7 billion in bitcoin, signaling anticipated payouts

On Tuesday, a significant Bitcoin (BTC) movement occurred from addresses associated with Mt. Gox, the defunct cryptocurrency exchange.

At 8:12 a.m. UTC, over 48,641 BTC (valued at $3.1 billion) was transferred from a Mt. Gox-labeled address to an unlabeled address “3JQie.” This large transfer followed a series of earlier movements, including a presumed test transaction of 0.021 BTC, an internal transfer of 44,000 BTC, and another transfer of nearly 42,588 BTC to an address later identified as another internal address.

Kraken, one of the exchanges chosen to manage creditor payments, confirmed receiving Bitcoin and Bitcoin Cash (BCH) transfers from the Mt. Gox Rehabilitation Trustee. Blockchain analytics platform Arkham suggested the “3JQie” address is likely associated with Kraken, with the funds currently remaining unspent.

Two Japanese exchanges, Bitbank and SBI VC Trade, have already distributed their allocated funds. Other selected firms — BitGo, Bitstamp, and Kraken — have varying payout deadlines ranging from 20 to 90 days.

These movements precede an anticipated $9 billion worth of Bitcoin repayments to Mt. Gox creditors. The exchange filed for bankruptcy in February 2014 after losing approximately 850,000 BTC to multiple hacks. The Bitcoin price experienced a temporary dip from $65,000 to $63,000 during these transfers before recovering.

What is  Mt. Gox?

Mt. Gox was once the world’s largest Bitcoin exchange, handling over 70% of all Bitcoin transactions worldwide at its peak. Founded in 2010 by Jed McCaleb and later sold to Mark Karpelès, the Tokyo-based exchange played a crucial role in the early days of cryptocurrency trading.

The name “Mt. Gox” originally stood for “Magic: The Gathering Online eXchange,” as it was initially created to be a trading platform for the popular card game before pivoting to Bitcoin trading. In February 2014, Mt. Gox suspended trading, closed its website, and filed for bankruptcy protection.

This event was one of the most significant setbacks in the history of Bitcoin, shaking investor confidence and highlighting the need for better security measures in the cryptocurrency industry. The incident led to ongoing legal proceedings and attempts to compensate affected users.

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