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Mt Gox Transfers Bitcoin to New Wallet, Payment Signal?
Defunct cryptocurrency exchange Mt Gox has transferred 44,527 Bitcoin (BTC) to a new cryptocurrency exchange as it anticipates paying off a group of creditors. The bankrupt cryptocurrency exchange has announced that it will begin paying off its creditors who lost assets in the 2014 hack. The past few weeks have seen price fluctuations following the announcement and other industry factors.
Mt Gox moves Bitcoin
On-chain data from blockchain analytics firm, Arkham The exchange’s linked wallet later moved 44,527 BTC worth approximately $2.84 billion to an internal wallet. The wallet has since moved an additional 47,229 BTC as the inflows continue.
The initial moves are flagged as a test transfer as the exchange repositions itself to distribute creditors’ funds. At the time of publication, the wallet holds 138,985 BTC worth $8.87 billion. Similarly, on-chain data showed on July 4 that a wallet linked to Mt Gox moved 47,000 Bitcoin worth around $2.7 billion to a new wallet, and subsequently two more transfers. The first of 1544 BTC, worth around $84 million, was sent to Bitbank, while 1,200
BTC worth US$64 million was sent to a new wallet.
The initial community reaction is awaiting the refund, which is expected to generate selling pressure. However, the phased refund could reduce the anticipated pressure over several quarters. Furthermore, bullish activity is expected as some commentators opine that institutional investors can invest in a large number of assets as the market recovers.
Eligible companies see entries
The Mt Gox hack has seen investors lose funds, but they will see a phased refund as the exchange distributes 142,000 worth of Bitcoin.
The current payment is for creditors who agreed to a 10% cut in their shares before the civil litigation process concluded. CoinShares estimated that 75,000 BTC would flow into the market, which could cause bearish sentiment.
Five companies; Bitgo, Kraken, Bitstamp, SBI VC Trade, and Bitbank are in charge of the redistribution. As noted earlier, a transfer was made to Bitbank.
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