Mt. Gox’s $2.1B Bitcoin Wallet Activates

NEW DELHI (CoinChapter.com) – A Bitcoin wallet containing $2.19 billion worth of assets from the defunct Mt. Gox exchange has shown signs of activity. On August 13, 2024, the wallet executed a test transaction, marking its first movement in two weeks.

Arkham Intelligence, a leading crypto analytics firm, reported on X that the wallet, identified as bc1q26, likely belongs to BitGo. This custody provider stands as the fifth and final exchange responsible for distributing funds to Mt. Gox creditors.

Wallet Currently Holds Around $2b Worth of Bitcoin

As of the latest update, the wallet holds 33,105 Bitcoin, valued at approximately $1.96 billion. This slight decrease from the initial $2.19 billion transfer on July 30 reflects recent fluctuations in market sentiment. The price of Bitcoin stood around $58,900 on August 13, resulting in a decrease of about $23 million in the wallet’s value.

Despite this substantial movement of funds, no further activity has been observed since the initial test transaction. Notably, the reactivation of this wallet has not triggered a significant market sell-off, contrary to some expectations.

CryptoQuant data reveals that exchanges have completed about 67.7% of the Mt. Gox distribution process as of 19 hours before the wallet’s activation. This progress is part of the exchange’s rehabilitation plan, which began on July 5, 2024.

The plan outlines the repayment of debts to creditors in both Bitcoin and Bitcoin Cash. These will be through designated cryptocurrency exchanges, including Kraken, Bitstamp, and BitGo. Reddit posts have corroborated the commencement of these repayments. Some users have reported transfers from the “rehabilitation trustee.”

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Creditors’ Unexpected “Diamond Hands”

The distribution of over $3.2 billion in Bitcoin to approximately 127,000 Mt. Gox creditors have not resulted in a mass sell-off. This behavior suggests that many creditors, despite waiting over a decade for their funds, are choosing to hold onto their recovered assets.

A Glassnode report from late July described this distribution as “the final chapter in a major market overhang over the industry since 2013,” highlighting the historical significance of this event.