Following a $2.19 billion outflow of 32,371 Bitcoin from the exchange’s cold wallet, Mt. Gox’s Bitcoin holdings are once again on the move. The assets moved from the cold wallet (12Gws) to an unidentified wallet beginning with 1FG2Cv.
Mt. Gox Still Holds Over 44K Bitcoins
According to Arkham Intelligence, Mt. Gox’s cold wallets contain 44,378 Bitcoin, which is worth $3 billion at current market prices. Recently, the exchange sent 500 Bitcoins worth $35 million to unknown wallets.
Although the exchange and the trustee have not specified the purpose of these transactions, many believe they are part of the exchange’s long-overdue efforts to repay its creditors under a rehabilitation scheme authorized in 2021.
Mt. Gox declared bankruptcy in 2014, following a series of hacks that emptied the exchange’s Bitcoin balances belonging to its clients. The suspected intrusions caused the exchange to progressively lose approximately 850,000 Bitcoin, making it one of the greatest heists in the history of cryptocurrency. However, law enforcement discovered and recovered around 140,000 Bitcoin.
The exchange’s trustees chose top cryptocurrency exchanges Kraken, Bitstamp, Bitbank, SBI VC Trade, and BitGo to help with the distribution process. Although some creditors have already been paid, the process has been sluggish and does not appear to be ending anytime soon.
In July, Kraken received 48,641 BTC in creditor monies from Mt. Gox Trustee, which was valued at approximately $3.1 billion at the time. The exchange released an official announcement indicating a distribution window of 7 to 14 days.
Repayment Deadline Now October 2025
The trustee in charge of the creditor reimbursement process has extended the deadline for repaying former Mt. Gox clients by twelve months, until the end of October 2025, up from October 2024. The trustee’s extension request highlighted creditors’ failure to complete the mandatory repayment process, as well as technical problems.
The reimbursement process includes massive amounts of Bitcoin worth billions of dollars. After a decade of waiting, analysts are concerned that the exchange’s creditors may liquidate its assets, resulting in a market selloff. Bitcoin is currently trading at $68,230 and has been relatively stable in the last 24 hours, with a 1% drop.
Conclusion
The recent transfer of Bitcoin from Mt. Gox’s cold wallets indicates continued progress in the complex and lengthy process of reimbursing creditors following the exchange’s infamous 2014 collapse. While some creditors have been partially repaid, the trustee’s recent decision to extend the repayment deadline to October 2025 suggests that logistical and technical challenges persist.
This delay underscores the difficulty in coordinating large-scale asset distributions and may further test creditors’ patience after nearly a decade of waiting. Analysts worry that these staggered repayments could lead to selloffs, potentially impacting Bitcoin’s market stability. However, Mt. Gox’s careful management of funds and phased distribution through reputable exchanges may help reduce the risk of sudden market shocks.
Reece Conner
Reece Conner is a leading expert in the cryptocurrency industry, known for delivering cutting-edge insights and practical guidance to both newcomers and seasoned investors. With a background in finance and technology, Conner bridges the gap between complex blockchain concepts and real-world applications.