Defunct crypto exchange Mt. Gox transfers 32,371 BTC worth $2.19B to an unknown address

A cold wallet (12Gws) associated with the now-collapsed crypto exchange Mt. Gox transferred 32,371 Bitcoin to an unknown wallet address starting with 1FG2Cv. According to the data intelligence platform Arkham, the transaction occurred at 7:38 UTC+8.

Mt. Gox Bitcoin holdings are once again on the move after the exchange’s cold wallet witnessed an outflow of 32,371 Bitcoin worth $2.19 billion. The transfer saw the assets flow from the cold wallet (12Gws) to an unknown wallet starting with 1FG2Cv.

Mt. Gox still holds 44,378 Bitcoin worth $3 billion

According to Arkham Intelligence, Mt. Gox’s cold wallets hold 44,378 Bitcoin, which is currently worth $3 billion at market rates. Mt Gox’s wallets have been active. The exchange recently transferred 500 Bitcoin worth $35 million to unknown addresses.

Although the exchange and the trustee have not clarified the intentions of these transactions, many believe that they are part of the long overdue process of the exchange’s efforts to repay its creditors under a rehabilitation proposal approved in 2021. 

Mt. Gox filed for bankruptcy in 2014 after undergoing a myriad of hacks that drained the exchange’s Bitcoin holdings belonging to its clients. The reported hacks saw the exchange gradually lose about 850,000 Bitcoin, making it one of the largest heists in the history of crypto. However, law enforcement tracked down and recovered about 140,000 Bitcoin.

The exchange’s trustees selected top crypto exchanges Kraken, Bitstamp, Bitbank, SBI VC Trade, and BitGo to facilitate the distribution process. Although some of the creditors have already been paid, the process has been slow and does not seem to be ending any time soon.

In July, Kraken received 48,641 BTC in creditor funds from Mt. Gox Trustee, which was worth about $3.1 billion then. The exchange issued an official statement announcing a 7- to 14-day window for the distribution process. 

Mt. Gox trustee extends repayment deadline till October 2025

The trustee overseeing the creditor reimbursement process extended the deadline for repaying former Mt. Gox customers by twelve months to the end of October 2025 from the previous deadline of October 2024. The extension was approved by the court and announced on October 10, 2024. The trustee’s extension request cited issues with creditors failing to complete the required repayment process and technical issues. 

The reimbursement process involves large volumes of Bitcoin worth billions of dollars. After a decade of waiting, analysts have developed concerns that the exchange’s creditors could liquidate their assets, causing a market selloff. Bitcoin is currently trading at $68,230 and has largely remained unchanged in the last 24 hours with a 1% dip. The asset price has fallen by close to 4%, according to price data aggregator CoinMarketCap.

Bitcoin briefly touched the 73k price towards the end of October but has declined to its current rate ever since. Analysts predict the broader crypto landscape could witness increased volatility following the anticipated U.S. elections that have extended campaigns to the crypto community.