Bitcoin Dips Below $68K as Mt. Gox Transfers Billions to Unknown Address

Bitcoin Dips Below $68K as Mt. Gox Transfers Billions to Unknown Address

Bitcoin’s price fell below $68,000 following a significant transfer of funds by Mt. Gox, one of the earliest and once-dominant Bitcoin exchanges. Blockchain analysts from Look on Chain reported that Mt. Gox moved approximately $3 billion worth of Bitcoin (BTC) to an external address for the first time in years.

The transfer involved over $2.9 billion in BTC being sent to the address 1Jbez…LAPs6, where the funds have remained since the transaction. This move marks a notable event for Mt. Gox, which previously handled over 70% of global Bitcoin transactions before its infamous collapse.

Currently, the exchange’s associated wallets hold about 137,892 BTC, valued at approximately $9.3 billion, according to data from Arkham Intelligence.

Mark Karpeles, the former owner of Mt. Gox, commented on the situation, stating, “As far as I know, everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening.”

Mt. Gox, founded in Japan in 2010, quickly rose to prominence as the world’s largest Bitcoin exchange. However, its success was short-lived. In early 2014, the platform abruptly halted trading, shut down its website, and filed for bankruptcy protection, revealing the loss of approximately 850,000 BTC, worth about $450 million at the time. Investigations revealed that the majority of these Bitcoins had been stolen over several years, starting as early as late 2011.

The bankruptcy proceedings of Mt. Gox have been prolonged and complex. However, a resolution appears to be on the horizon, with potential payouts to creditors possibly beginning in the second half of 2024. Estimates suggest that the total distribution could be as substantial as $2 billion.

This significant transfer and the anticipation of creditor repayments have added to the volatility in the cryptocurrency market, contributing to Bitcoin’s recent price dip below $68,000.

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