The defunct crypto exchange Mt Gox is at it again, moving thousands of bitcoins (BTC) from one wallet to another in what could be considered part of efforts to repay its creditors.
According to data from the on-chain intelligence firm Arkham, Mt Gox moved a total of 11,501 BTC worth $1.01 billion at the time from its cold wallet to a hot one and an unlabelled address. The defunct entity transferred 893 BTC ($78 million) to a hot wallet labeled 1Jbez, while 10,608 BTC ($927.5 million) was deposited in the unmarked address 1DcoA.
Another $1B BTC Transfer
It remains unclear if Mt Gox’s latest move is an internal reshuffling of assets or part of repayment efforts that could trigger significant selling activity in the short term as creditors offload their assets.
The move could be internal shuffling because the cold wallet that executed the transfers received about 11,502 BTC from a different Mt Gox address two weeks ago. Up until writing time, the 10,608 BTC was still unspent and sitting in the unmarked address, substantiating the likelihood of further internal transfers in the near term.
However, the 893 BTC in hot wallet 1Jbez had been sent to another receiving address labeled 1FodPL, which, in turn, moved the $78 million BTC to an address tied to the crypto exchange Kraken. By press time, the funds were still unspent in Kraken’s wallet.
With Mt Gox’s repayment deadline seven months away, the defunct entity could soon be moving more funds to designated exchanges. Recall that the Mt Gox trustee commenced creditor repayments in July 2024 but extended the deadline to October 31, 2025, due to a system error and incomplete procedures by creditors. As reported earlier, over 17,000 creditors have received their repayments, with more to be resolved soon.
Bitcoin Reacts
Since Mt Gox kicked off creditor repayments, almost every large transfer from wallets tied to the entity has triggered a decline in bitcoin’s price. This time was no exception. The cryptocurrency’s ascent was halted at just shy of $89,000 and pushed south to $86,500 before it recovered some ground to $87,000 as of press time.
With BTC already struggling amid negative market sentiment, the asset could witness more declines if Mt Gox continues to move its funds. Worse still, selling pressure from settled creditors could trigger even more dips in the coming weeks.
Meanwhile, according to Arkham data, Mt Gox still holds about 35,583 BTC, roughly $3.08 billion.
