- Mt. Gox, the defunct cryptocurrency exchange, moved 24,051 BTC worth nearly $2.5 billion to an unknown address shortly after Bitcoin hit a new all-time high of $104,000.
- Bitcoin has surged to $102,585.44, with its market capitalization exceeding $2 trillion.
Mt Gox, once known as the largest Bitcoin exchange moved over 24,000 Bitcoin worth nearly $2.5 billion to an unknown address on Thursday morning. Similarly, Bitcoin, the largest-cryptocurrency by market cap hit a new all-time high trading above the $100,000 price level.
Data from Arkham have revealed that Mt Gox moved a whooping 24,051 BTC to an unknown wallet address. Interestingly, this address with initials starting with “1N7j” had no previous history.
This transaction took place at 2.45 am UTC on Thursday in its first transfer since November 12.
In the same vein, this major transaction happened slightly, 12 minutes after BTC hit the $104,000.
The recent movement of funds by Mt. Gox, a bankrupt cryptocurrency exchange since early 2014, could indicate preparations for distributing payouts to creditors. Historical precedent suggests that such actions often precede the release of funds to affected parties.
Reminiscing, the Mt. Gox scandal was a massive cryptocurrency exchange hack that occurred in 2014. At the time, Mt. Gox was the largest Bitcoin exchange in the world, handling over 70% of all Bitcoin transactions.
The hack resulted in the theft of approximately 850,000 Bitcoins, which at the time were worth around $460 million. This massive loss led to the bankruptcy of Mt. Gox and caused significant damage to the reputation of the cryptocurrency industry as a whole.
Going back on track, events like this often most times than not are seen as bearish for BTC as this could mean that these assets would be sold once the creditors get a hold of the assets.
Nevertheless, some analysts argue that the market has already factored in the potential downward pressure from Mt. Gox payments, given that these payments have been in the pipeline for an extended period.
Still on the same, their is a high chance that creditors may receive payouts in Bitcoin. However, as per a poll conducted on Reddit, a big portion of the creditors asserted that they werent rushing to sell their digital assets.
It said many creditors “still have not received their repayments because they have not completed the necessary procedures for receiving repayments.”
