Bankrupt Mt. Gox trustee said it is not selling Bitcoin

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Bankrupt Mt. Gox trustee said it is not selling Bitcoin Bankrupt Mt. Gox trustee said it is not selling Bitcoin Oluwapelumi Adejumo · 35 mins ago · 2 min read

Mt. Gox moved an extensive stash of Bitcoin and Bitcoin Cash in several transactions today.

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Updated: May. 28, 2024 at 2:34 pm UTC

Bankrupt Mt. Gox trustee said it is not selling Bitcoin

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The Rehabilitation Trustee of the defunct crypto exchange Mt. Gox has confirmed that it has not sold its significant Bitcoin holdings despite transferring over 140,000 BTC (approximately $10 billion) today.

The trustee clarified in a May 28 statement that preparations to repay creditors were ongoing. According to the firm, the bankruptcy process will compensate creditors with fiat currency, Bitcoin, and Bitcoin Cash. While fiat currency payments have already begun, creditors have not received digital asset payments.

It added:

“The Rehabilitation Trustee is currently managing bitcoin and bitcoin cash in a secure manner. As the Rehabilitation Trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made.”

Former Mt. Gox CEO Mark Karpeles explained that the transactions were part of the distribution process. He stated: He said:

“The trustee is moving coins to a different wallet in preparation of the distribution that will likely happen this year, there is no imminent sale of bitcoins happening.”

Mt. Gox’s Bitcoin and BCH on the move

Earlier today, the crypto community noticed multiple transactions from wallets associated with the failed Mt. Gox exchange.

Blockchain analytics platform Arkham Intelligence reported that 72 Mt. Gox-linked wallets sent 141,686 BTC in batches of about 2,000 BTC to a new wallet, which received its first transaction of $3.65 on May 20.

The new address has since transferred almost 4,022 BTC, worth over $273 million, to other wallets.

Additionally, Mt. Gox-related addresses moved 142,846.22 BCH to an unmarked address labeled 1LG4G. The wallet currently holds 142,824.27 BCH, worth about $67.9 million, making it the 11th largest BCH holding address.

This movement has led to speculation within the community that Mt. Gox might soon start repayments. Alex Thorn, the Head of Research at Galaxy Digital, suggested this could be the beginning of distributions to creditors.

Meanwhile, the transfers appeared to have sent jitters down the market, with Bitcoin’s price declining below $69,000 to $68,392 as of press time. Similarly, BCH’s value recorded a 4.03% fall to $470, according to CryptoSlate’s data.

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