Mt. Gox Stirs as BTC Holdings Shift, Signaling Creditor Repayments May Begin

Mt. Gox, the cryptocurrency exchange that collapsed in February 2014, has started repaying its creditors after a decade.

Bankrupt cryptocurrency exchange Mt. Gox has made its first move in preparing to repay its creditors after a decade. On Monday, the exchange transferred 0.021 BTC to a new wallet, a small yet significant step in the final stage of the bankruptcy proceedings.

The transfer, spotted by Lookonchain, is valued at approximately $1,390. While the amount is relatively small compared to Mt. Gox’s total holdings, it signals the beginning of the long-awaited distribution of funds. According to Arkham Intelligence, the exchange's final repayment plan will be executed in phases.

The small transfer is likely to be the first step in testing the waters before larger amounts are shifted into the new wallet. Mt. Gox filed for bankruptcy in February 2014 after losing 850,000 BTC in a hack. Of that total, around 200,000 BTC were later found in “cold” wallets.

The exchange's creditors have been waiting patiently for their funds to be returned, and this latest move by Mt. Gox is sure to bring some relief. The exchange is planning to repay its creditors in BTC and BCH, with the remaining Bitcoin to be distributed in phases.

According to recent data from Arkham Intelligence, on July 5, two large transactions were made by Mt. Gox from its cold wallet. Around 1,545 BTC (worth about $98.9 million at the time) was sent to the Japanese exchange Bitbank, and 1157.1 BTC ($63.6M) was moved to an unknown counterparty.

On July 16, a massive 48,641 BTC (worth approx $3.11 billion at the time) was transferred to what is believed to be Kraken’s address. Following these transfers, Bitcoin experienced a slight price decline. However, the price quickly recovered, rising from $55,900 to over $67,710.

Currently, 90,344 BTC (around $6.11 billion at press time) is left in Mt. Gox’s wallets awaiting distribution. The remaining Bitcoin, along with Bitcoin Cash from the 2018 hard fork, will be repaid over the next few months.

Mt. Gox trustee Nobuaki Kobayashi recently reported that over 13,000 of the exchange's 20,658 individual creditors have been repaid. This means that the exchange has now completed around 65% of its total creditor repayments.

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