On Tuesday, blockchain analytics firm, Arkham Intelligence, reported that the Mt. Gox estate moved around 33,964 $BTC, valued at $2.25 billion, to a new wallet.
This is part of the ongoing process to address the fallout from the 2014 hack.
Additionally, $3.1 billion in Bitcoin was moved between two cold wallets held by the estate.
Amid these large transactions, Bitcoin’s price went down by about 1% daily. However, the coin continued to trade in the green side of its chart, as of press time.
Last week, several exchanges, including Kraken, announced they had completed the return of funds to creditors.
Kraken is one of five exchanges tasked with distributing recovered funds to the 127,000 creditors affected by Mt. Gox’s collapse.
The trustee managing the Mt. Gox estate confirmed that repayments in Bitcoin and Bitcoin Cash have been made to over 17,000 creditors through designated cryptocurrency exchanges.
This was a significant step in compensating those who lost funds in the hack.
Mt. Gox, once a major player in the crypto market, filed for bankruptcy in 2014 after losing 850,000 Bitcoins to hackers.
Recent actions by the Mt. Gox estate and participating exchanges show ongoing efforts to compensate affected creditors.
Ongoing repayments
Remaining repayments will occur after verifying registered accounts and finalising distribution terms with designated crypto exchanges.
The involved exchanges include Bitstamp, SBI VC Trade, Bitbank, and Coincheck. While Bitstamp, SBI VC Trade, and Bitbank have confirmed the completion of their part, Coincheck has yet to respond.
The Mt. Gox estate’s main wallet still holds about 80 $BTC, worth approximately $5.3 billion. It’s unclear whether these assets are being prepared for liquidation.
Both Arkham Intelligence and the Mt. Gox trustee have not commented on the recent transfers.
This follows a similar move last week, where the estate transferred $2.8 billion in Bitcoin to a new wallet.
Bitcoin’s reaction
Following the move, Bitcoin’s price dipped below $65,656, down 1.13% on Wednesday. The top continued its downward trend, currently trading at $66,205.
The price movement has fueled speculation and market volatility, particularly after reports of the US government moving $2 billion in Bitcoin.
Bitcoin is currently struggling to surpass the $70,000 mark.
Key price levels to watch now include the pivot point at $65,900, with immediate resistance at $66,852.
If Bitcoin breaks below this level, it could push the price down towards $64,700, or even further to $63,600. The RSI is at 36.18, indicating oversold conditions, which could signal potential for further price decline.
The 50-day Exponential Moving Average (EMA) is positioned at $66,852.
Despite the distribution, many creditors are choosing to HODL their Bitcoin.
A recent report from Glassnode noted that the on-chain profile of the creditors indicated they are long-term investors.
“The profile of the creditors appears to represent one of a HODLer or long-term investor… dampening the magnitude of sell-side pressure across the coming weeks”, the report stated.
This may mitigate the sell-side pressure in the coming weeks, despite the substantial price increase over the decade.
The recent transfers and repayments from the Mt. Gox estate marks significant progress in resolving the decade-old hack.
While the immediate impact on Bitcoin’s price remains uncertain, the ongoing efforts to compensate creditors and the involvement of major exchanges indicate a positive direction.
