Mt. Gox Transfers $700M in Bitcoin: First Significant Move in Three Weeks

In a notable development, the defunct cryptocurrency exchange Mt. Gox has recently executed its first major transaction in nearly three weeks, moving approximately 12,000 Bitcoin.

Details of the Transaction

The transfer took place on August 20 around 11:39 pm UTC, involving:

• 12,000 Bitcoin (BTC) valued at $709.4 million directed to a new wallet address starting with “1PuQB.”
• 1,265 BTC, worth $74.8 million, sent to a wallet identified as a Mt. Gox cold storage, beginning with “1Jbez.” The funds in this wallet have remained static since the transfer.

Possible Implications of the Move

This transaction has sparked speculation regarding the potential distribution of Bitcoin to Mt. Gox creditors, who have been waiting since the exchange’s collapse in 2014 for the return of their assets.

However, experts have differing opinions. Alex Thorn, the head of research at Galaxy, suggests that only a minor part of the moved funds, specifically the $74.8 million, may be intended for distribution. He posits that the majority is being placed into “fresh cold storage” still owned by the estate.

Background Context

This significant Bitcoin transfer marks the first major activity from Mt. Gox since July 30, when the exchange moved 47,229 BTC to three undisclosed wallets in a short span of three hours. Arkham Intelligence previously speculated that a substantial number of these coins were sent to an address linked to BitGo, a custodian collaborating with the Mt. Gox Trustee to facilitate creditor reimbursements.

Later actions revealed that the wallet used for that transaction conducted a test transfer before relocating all assets to another undisclosed wallet, where they have since remained.

Current Holdings and Distribution Statistics

To date, approximately 68% of Mt. Gox’s assets have been redistributed to creditors, as per data from CryptoQuant. As of the latest update, the exchange still controls a surplus of 46,164 BTC, equating to around $2.7 billion.

Creditor Behavior

Interestingly, Mt. Gox creditors seem to be holding onto their returned Bitcoin, defying earlier predictions of mass selling. Lukas Enzersdorfer-Konrad, deputy CEO of Bitpanda, highlighted that many creditors see Bitcoin not just as an asset but as a vital technology and belief system, influencing their decisions on when to sell.

Maria Carola, CEO of cryptocurrency exchange StealthEX, noted that creditors are primarily retaining their assets in hopes of future price increases. She also pointed out that immediate liquidation could result in substantial capital gains taxes, while holding allows for potential tax deferrals and better selling conditions in the future.