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EGW-NewsCryptoMt. Gox Moves Over $3 Billion in Bitcoin: Will The Crypto Market Shake?
Mt. Gox Moves Over $3 Billion in Bitcoin: Will The Crypto Market Shake?
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Mt. Gox Moves Over $3 Billion in Bitcoin: Will The Crypto Market Shake?

Defunct crypto exchange Mt. Gox moved 35,334 BTC in March, worth over $3 billion. The third transfer happened on March 25, and blockchain analytics firm Arkham Intelligence reported a move of 11,501 BTC by Mt. Gox. 10,608 BTC (about $929 million) were sent to a cold wallet, while the remaining 893 BTC (about $78 million) was sent to a Mt. Gox change wallet.

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Early on, Mt. Gox made two bitcoin transfers worth over $1 billion. On March 6, the crypto exchange transferred 12,000 BTC, and on March 11, it moved 11,833 BTC. The crypto community speculates that the transfers suggest a potential payout to creditors after Mt. Gox’s serious hack over a decade ago.

The worrying thing is that such massive transfers have shaken the market before, and not in a good way. In July 2024, the German government spooked speculators and sunk the price of Bitcoin after selling about 50,000 BTC confiscated after a raid on a movie piracy site.

Crypto investors have always monitored such transfers of large amounts of Bitcoins to see how the market will be affected. Another blockchain analyst firm, this time Spot On Chain, tracked about 332 BTC from Mt. Gox sent to the crypto exchange BitStamp. The firm suspects that the 893 BTC stored in a hot wallet could also be moved out.

If that happens, the BTC tokens could potentially be liquidated or distributed, affecting the crypto market and the price of Bitcoin.

Mt. Gox Downfall and Creditor Payments

Mt. Gox, a Japan-based crypto exchange, once handled 70-80% of all Bitcoin transactions globally. However, in 2014, the platform suffered a security breach losing 850,000 BTC, then valued at around $500 million. The heist is one of the biggest crypto hacks ever recorded, leading to its bankruptcy.

In February 2014, a Tokyo court appointed a trustee to manage the bankruptcy proceedings and compensate creditors with the remaining assets. The platform made its first repayment in July 2024, paying out 142,000 BTC (around $11 billion), 143,000 Bitcoin Cash (around $47 million), and 69 billion Japanese yen (worth $469 million).

While the agreement was to make all payments by October 2024, the trustee pushed the deadline by a year to October 31 2025. The reason claimed was, “creditors still haven’t received their payments because they have not completed the necessary procedures for receiving payments.” Consequently, the payment process became slower, thus the extension.

After Bitcoin hit the $100,000 mark, Mt. Gox moved over 24,000 BTC worth around $2.5 billion to an unknown address, keeping traders on high alert with every move that could impact the markets.

Many crypto investors expected creditors to rush and sell their tokens in the first round of compensation but that didn’t happen. If the trend remains the same even up to the final repayments, then the impact could be minimal. The reverse is that creditors sell quickly, causing a shake-up in the crypto market.

What Next For Mt. Gox?

Despite giving away thousands of Bitcoins, Mt. Gox still remains with 35,000 BTC valued at around $3 billion. Crypto research firms, analysts and investors always have Mt. Gox on their radar as its trading volumes can easily impact the markets.

The story of Mt. Gox shows how hacking remains a serious issue in the crypto world. Other crypto exchanges like ByBit have suffered at the hands of hackers losing $1.5 billion, mostly in Ethereum tokens.

It’s not just crypto exchanges that are targeted; DeFi platforms like Poly Network and Wormhole have lost over $300 million to hackers. Gaming sites operating on blockchain networks and using crypto have also been targeted.

In 2023, casino site Stake lost $41 million in crypto to a North Korean hacking syndicate. With so many cases on the rise, most countries are hesitant to legalize crypto casinos. That’s why alternatives like sweepstakes casinos are popular. New sweepstakes casinos offer players the chance to enjoy casino gaming with virtual currencies similar to crypto. Only that there’s no risk of volatility, and they are free to play.

Many countries have been pushing for the regulation of crypto so that investors can be protected from hackers and market manipulation. Mt. Gox was one of the earliest crypto hacks recorded, and many years later, crypto platforms continue losing millions and billions of dollars. With all creditors being paid by October, hopefully, Mt. Gox will serve as a great example of how crypto regulation is perhaps necessary.

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