Mt. Gox's Billion-Dollar Bitcoin Moves Signal Possible Repayments to Creditors
After a decade of anticipation, former users of the infamous Mt. Gox exchange may finally be seeing the light at the end of the tunnel. Recent transfers from Mt. Gox’s wallets suggest that creditor repayments could soon ramp up, marking a potential conclusion to a saga that has stretched on for years.
On Nov. 4, Mt. Gox transferred over $2.19 billion worth of Bitcoin to three new wallets, and a portion of these funds found their way to centralized exchanges like OKX and B2C2, according to Spot on Chainn's Nov. 5 report on X (formerly Twitter). Since the start of the transfers, approximately 32,871 BTC, equivalent to around $2.22 billion, has moved out of Mt. Gox wallets, with $20.13 million landing on these exchanges. These moves bring renewed focus to the remaining 12,006 BTC—valued at $810 million—still held in Mt. Gox-associated wallets.
Creditors have waited patiently for over 10 years as the value of Bitcoin has skyrocketed over 8,500% since Mt. Gox’s collapse in 2014. This has fueled concern that a sudden market influx could impact Bitcoin’s price. Yet, past repayment rounds show that most creditors are holding on rather than selling their BTC. In a recent milestone, Mt. Gox completed 41.5% of its Bitcoin distribution to creditors, totaling 59,000 BTC, as of July 30. Many creditors opted to receive Bitcoin rather than cash, reflecting a shift in Japanese bankruptcy practices and indicating that only a fraction of these coins may actually hit the open market.
Founded in 2010 and reaching a peak in 2014 as one of the world’s largest Bitcoin exchanges, Mt. Gox’s downfall stemmed from a massive hack that cost it 850,000 BTC, making it one of the largest breaches in crypto history. With new on-chain movements, the saga might finally be approaching a close—along with potential shifts in Bitcoin markets as Mt. Gox’s creditors receive their long-awaited compensation.