This is why Mt. Gox’s $5 billion Bitcoin transaction issue
The defunct crypto exchange Mt. Gox has started trading more than 75,000 Bitcoin (BTC), worth an estimated $5 billion. This marks the first move of these currencies in over five years, creating waves in the crypto markets.
The recent changes regarding Mount Gox have attracted a lot of attention, not only due to the amount of money held, but also the possible effects on the crypto markets.
Gox Lenders Will Continue Holding Bitcoin?
According to Arkham Intelligence, “Mt. Gox” transferred the BTC to a new address, 1JBase. The crypto exchange transferred BTC in batches of about 2,000 BTC in the last 4 hours.
Despite this significant transfer, the Mt. Gox wallet holds an estimated $9.3 billion worth of BTC assets.
Read more: Who will have the most Bitcoins in 2024?
The transaction comes ahead of the Oct. 31 deadline by which Gox plans to pay its creditors. The settlement includes 142,000 BTC, 143,000 Bitcoin Cash (BCH) and 69 billion Japanese Yen.
The settlement follows the Tokyo District Court's approval of the reinstatement petition. By 2021, 99% of creditors supported the restructuring plan.
The crypto community speculates that this significant move could trigger a sell-off due to Gox's longer wait for creditor payments. The concern may sell a portion of these transferable assets in the open market.
However, not all industry leaders are pessimistic. Alex Thorne, head of research at Galaxy Digital, believes that lenders will continue to hold Bitcoin after receiving it from Gox.
“BTC has been moved from Mt Gox at the last minute, possibly the beginning of distribution to creditors. “I personally expect most of BTC to be hodl'd, but I can't say the same for BCH,” said Thorne.
The market reacted quickly to this news. Bitcoin price is down 4% from the previous day's high of $70,600, now trading around $67,800. Similarly, Bitcoin Cash experienced a 7% decline from its peak of $503.7, currently trading at $468.
Read more: Top Crypto Losses: What You Need to Know
In the year Founded in 2010, Mt. Gox at one point handled 70% of Bitcoin transactions worldwide. However, in the year In 2014, a major cyber attack had a major impact on the business, resulting in the loss of approximately 850,000 BTC from the client's and company's funds.
Although the 200,000 BTC was later recovered, legal battles in Japan delayed the return to the affected parties.
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