Mt. Gox Has Now Paid Over 17,000 Creditors, Still Holds $2.1 Billion BTC

Bankrupt cryptocurrency exchange, Mt. Gox, said that it has paid more than 17,000 rehabilitation creditors in line with its scheduled repayment plan. After waiting a decade to receive their lost funds, users are now confirming receipts and withdrawals from designated exchanges.

With the recent distribution, the repayment ordeal is gradually approaching the end. The price of Bitcoin has reacted poorly to the news, dropping significantly over the last day. This has triggered further concerns about the impact a potential selloff by creditors will have on the price trajectory of the coin moving forward.

Mt. Gox Moves $2.2 Billion BTC to BitGo

Following the rehabilitation plan, Mt. Gox has sent a significant portion of BTC to the BitGo exchange. According to data by Arkham Intelligence, the collapsed exchange sent exactly 33.96k BTC, valued at $2.25 billion to a BitGo wallet address. It is important to know that BitGo is one of the designated crypto exchanges that partnered with Mt. Gox for the redistribution of funds to its creditors.

UPDATE: MT. GOX MOVES $3.1B BTC

Last night Mt. Gox addresses moved 33.96K BTC ($2.25B) to addresses we believe are most likely BitGo:

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BitGo is the 5th… pic.twitter.com/XWNiZ2boAN

— Arkham (@ArkhamIntel) July 31, 2024

Arkham Intelligence noted that BitGo is the fifth and final custodian working with the Mt. Gox Rehabilitation Trustee for this purpose alongside others including Bitstamp, Kraken, Bitbank, and SBI VC Trade.

According to a statement issued by Mt. Gox on July 31, the Rehabilitation Trustee has now paid out Bitcoin (BTC) and Bitcoin Cash (BCH) to 17,000 creditors since the beginning of July. The first three repayment dates were July 5, July 16, and July 24.

Kraken and Bitstamp had previously acknowledged the receipt of Bitcoin from Mt. Gox and have already started distributing it to verified users on their respective platforms. However, there have been several complaints on the Mt. Gox insolvency subreddit of users not having access and not being able to withdraw their funds due to security verification issues.

Meanwhile, Arkham Intelligence data show that Mt. Gox still holds 32.899k BTC, valued at $2.12 billion which will be distributed to the remaining creditors in time.

Remaining Funds Will be Disbursed Once Certain Processes are Complete

Mt. Gox previously announced that it would repay approximately 20,000 creditors. As previously stated, the former Japan-based exchange has paid more than 80% of the total number. According to the statement issued by the rehabilitation trustee attorney Nobuaki Kobayashi, the remaining 3,000 users who are yet to receive payment will get their funds once certain procedures have been reached.

One of the notable processes includes a confirmation of the number and validity of registered accounts. Others include, “acceptance of the intention to subscribe to the Agency Receipt Agreement by Designated Cryptocurrency Exchanges, etc.; completion of discussions between the Rehabilitation Trustee and Designated Cryptocurrency Exchanges, etc. regarding repayments; and confirmation that repayments can be made safely and securely.

Meanwhile, the price of BTC has declined sharply over the last day. At press time, BTC traded at $64,477 representing a 2.33% drop. Moreover, its one-day trading volume has seen a spike of 28.08% indicating a rise in selling pressure.