Mt Gox, the defunct exchange that was once the leading Bitcoin platform, has made a massive transfer of over 140,000 Bitcoin tokens, valued at more than $9.5 billion, to an unknown wallet. This sudden movement of funds has raised concerns among cryptocurrency analysts and investors about a potential large-scale sell-off.
The transfers began around six hours ago and have been happening in quick succession. The first transfer recorded was 3,999 BTC, worth approximately $277.65 million, followed by another significant transfer of 8,239 BTC, amounting to roughly $565.71 million.
In the hours that followed, the transactions increased in both frequency and volume. A notable transfer of 4,057 BTC, valued at nearly $966.33 million, was made five hours after the start, followed by an even larger transfer of 16,589 BTC, which carried a value of approximately $1.14 billion.
The peak of these transactions occurred in the last two hours, with two massive transfers. The first involved 32,137 BTC, worth about $2.18 billion, followed closely by another transfer of 32,499 BTC, worth approximately $2.20 billion.
The final and largest transaction was 34,138 BTC, transferring over $2.32 billion to the unknown wallet. CryptoQuant analyst Axel confirmed that all the funds were moved to a new wallet, sparking concerns of a potential widespread sell-off.
Mt Gox’s downfall began in 2014 when it suffered a severe hack, resulting in the loss of approximately 740,000 BTC belonging to customers and 100,000 BTC from the company. This event led to the collapse of the Japan-based trading platform and had a significant impact on its creditors.
While a substantial amount of the stolen Bitcoin was eventually recovered, compensating the affected creditors proved to be a complex process. After extensive negotiations, a resolution was reached, with general creditors receiving cash repayments and specific creditors being compensated in cryptocurrency.
The compensation process has taken a long time, and market participants have been concerned about a potential large-scale sell-off when creditors receive their tokens.
Disclaimer: This article provides information and should not be considered financial advice. The views expressed are the author’s own and do not reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.
