On Tuesday morning, a wallet connected to the Mt. Gox rehabilitation Trustee moved $3.2 billion worth of Bitcoin between different wallets, with some of it being sent to the digital asset exchange Bitstamp.
This large transfer caused Bitcoin’s price to drop below $67,000 as investors reacted to the news.
Mt. Gox Trustee Moves $3.2 Billion in Bitcoin, Spooking Investors
After a decade-long wait, billions of dollars worth of Bitcoin are finally on their way to Mt. Gox’s former customers. On Tuesday, the exchange’s trustee transferred 42,587.49 BTC, valued at approximately $2.85 billion, to a new address. Additionally, 2,238.87 BTC, worth around $150 million, was sent to Bitstamp. This move suggests that Bitstamp is preparing to distribute Bitcoin repayments to Mt. Gox’s creditors.
Bitstamp is one of five exchanges selected to handle the distribution of funds as part of Mt. Gox’s reimbursement process for over 20,000 creditors. The exchange has indicated that it will begin distribution as soon as it receives the Bitcoin. Tuesday’s large transfer followed several smaller test transactions, including one to Bitstamp.
Other exchanges, such as Kraken, Bitbank, and SBI VC Trade, have also started receiving and distributing their allocated Bitcoin to former Mt. Gox customers.
Mt. Gox’s Repayment Triggers Bitcoin Price Drop
Mt. Gox, once the largest Bitcoin exchange globally, collapsed in 2014 following a massive hack that saw 850,000 BTC stolen. Although only 140,000 BTC were recovered and are now being used to repay creditors, the exchange’s bankruptcy has led to ongoing concerns about market impact. The repayment process began in early July, heightening fears of potential mass selling by the long-waiting creditors.
Following recent transactions related to Mt. Gox, Bitcoin’s price fell to as low as $66,267, according to CoinGecko. Currently, Bitcoin is valued at $66,583, marking an 8.2% decrease from its all-time high of $73,747 set in March and slightly below its previous record of $69,044 from 2021.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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