The Rehabilitation Trustee of the defunct crypto exchange Mt. Gox has made it clear that despite transferring over 140,000 BTC (approximately $10 billion), it has not sold its significant Bitcoin holdings. In a statement released on May 28, the trustee reassured creditors that preparations to repay them are still ongoing. The bankruptcy process will involve compensating creditors with fiat currency, Bitcoin, and Bitcoin Cash. While fiat currency payments have already begun, digital asset payments have not been received by creditors. The trustee emphasized that they are managing Bitcoin and Bitcoin Cash securely and asked creditors to wait until the repayments are made.
Former CEO Explains Distribution Process
Former Mt. Gox CEO Mark Karpeles shed light on the recent transactions, stating that they are part of the distribution process. Karpeles clarified that the trustee is transferring coins to a different wallet in preparation for the distribution that is expected to take place this year. He emphasized that there is no immediate plan to sell Bitcoins. This explanation comes after the crypto community noticed multiple transactions from wallets connected to the failed Mt. Gox exchange.
Speculation and Market Jitters
The movement of 141,686 BTC in batches of about 2,000 BTC to a new wallet has sparked speculation within the community that Mt. Gox might soon begin repayments to creditors. The address that received these funds has since transferred a significant amount of Bitcoin to other wallets. Additionally, a large amount of Bitcoin Cash was also moved to an unmarked address, causing further speculation about potential repayments. Alex Thorn, the Head of Research at Galaxy Digital, suggested that these transactions could mark the beginning of distributions to creditors.
The market reacted to these movements, with Bitcoin’s price dropping below $69,000 to $68,392 at the time of writing. The uncertainty surrounding the transfers and the potential impact on the market have caused some jitters among investors. Despite this, the Mt. Gox Rehabilitation Trustee remains focused on managing the assets and preparing for the repayments to creditors.
