Bitcoin dips below $68k as Mt. Gox moves billions to unknown address

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As a long-term crypto investor with a deep understanding of the industry’s history, I find the recent news about Mt. Gox transferring billions worth of Bitcoin intriguing but also concerning.

Based on reports from cryptocurrency analysts at Lookonchain, the early bitcoin exchange Mt. Gox has transferred large amounts of crypto to an external wallet for the first time in years.

Once a leading player in the cryptocurrency trading scene, handling around 70% of global Bitcoin transactions through Mt. Gox, transferred approximately $3 billion worth of Bitcoins (BTC) to an unidentified wallet.

As an analyst, I’ve noticed that the wallets labeled #MtGox have been moving Bitcoin (BTC) out of their holdings. Specifically, they have transferred approximately 12,240 BTC, which is equivalent to around $843.6 million at current prices. However, they still retain a significant amount of BTC, with a balance of approximately 125,651 BTC or roughly $8.66 billion based on current market values. Here’s the wallet address for reference:— Lookonchain (@lookonchain) May 28, 2024

Based on information from blockchain analysis company Lookonchain, approximately $2.9 billion in Bitcoin was transferred from an exchange to the wallet addresses 1Jbez…LAPs6. Since then, these funds have not been moved.

Bitcoin dips below $68k as Mt. Gox moves billions to unknown address

As a researcher, I’ve discovered that after the recent transfer, the wallets connected to the exchange now contain approximately 137,892 Bitcoins. Based on current market values from Arkham Intelligence, these Bitcoins are valued at roughly $9.3 billion.

I’ve noticed that Bitcoin’s price has taken a hit lately and has dipped below the $68,000 threshold, now trading at $67,790 according to CoinGecko.

Established in Japan in 2010, this Bitcoin exchange expanded rapidly to claim the title of the largest in the world. However, its triumph was short-lived. In early 2014, the Tokyo company unexpectedly suspended trading, shut down its site, and sought bankruptcy protection, unveiling a loss of around 850,000 BTC, equivalent to approximately $450 million at that time. Later probes disclosed that most of these Bitcoins had been pilfered from the exchange’s hot wallets as early as late 2011.

The bankruptcy process for this exchange has been drawn out and intricate without a doubt. However, it’s important to note that progress is being made, and there are signs that a resolution may be imminent. Mt. Gox could reportedly initiate payouts to creditors as soon as the second half of 2024. The potential payout amount is significant, with estimates indicating that it could reach as high as $2 billion.

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2024-05-28 10:56