Mt. Gox Moves Over $6 Billion Worth of Bitcoin to a New Wallet

Mt. Gox, the bankrupt cryptocurrency exchange, has transferred 107,520 BTC, worth over $6 billion, to a new wallet in a series of transactions over a few hours.

This significant move, the first in five years, comes as the exchange prepares for upcoming creditor repayments. Former CEO Mark Karpeles and an official statement from Mt. Gox provide insights into the reasons behind this transfer.

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107,520 BTC Transferred in Just a Few Hours

It has been revealed that 107,520 BTC, worth over $6 billion, has been transferred from the wallet of the bankrupt cryptocurrency exchange Mt. Gox to a different wallet.

The transfer occurred in multiple transactions over the past few hours. According to Whale Alert, a platform that tracks large cryptocurrency transactions, the following amounts of Bitcoin were transferred:

・3,999 BTC
・8,239 BTC
・14,057 BTC
・16,589 BTC
・32,137 BTC
・32,499 BTC

Single Wallet Destination

Blockchain data indicates that all these Bitcoins were sent to the wallet address "1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6." As of the time of writing, this address holds 107,547 BTC.

There have been no further movements of Bitcoin from the destination wallet. However, the first transfer from Mt. Gox occurred about four hours ago, with the last transfer about one hour ago. Therefore, additional Bitcoin transfers might still happen.

Reason for the Large Bitcoin Transfer

In September 2023, Mt. Gox announced an extension for the deadline for basic repayments, early lump-sum repayments, and intermediate repayments to October 31, 2024. Late last year, it was also reported that cash repayments to creditors had begun.

While the exact reason for this significant transfer is currently unknown, it is noteworthy that this is the first time in about five years that Mt. Gox has moved BTC from its wallet. This has drawn considerable attention to the purpose behind this transfer.

The Bitcoin holdings and transaction history of Mt. Gox can be verified on Arkham Intelligence. As of the time of writing, the Mt. Gox wallet involved in this transfer holds 137,892 BTC.

Update: Former CEO Explains the Move

Mt. Gox's former CEO, Mark Karpeles, commented on the large Bitcoin transfer on May 28, 2024, stating, "As far as I know, everything is fine with MtGox."

He further elaborated that "The trustee is moving coins to a different wallet in preparation of the distribution that will likely happen this year," and assured that "There is no imminent sale of bitcoins happening."

Subsequently, Mt. Gox issued an official statement regarding the cryptocurrencies held by the trustee, explaining the preparations and management methods for repayments:

The trustee is preparing to make repayments for the portion of the cryptocurrency rehabilitation claims allocated as cryptocurrency based on the rehabilitation plan. Such repayments mean either (i) repayment through a method in which the designated cryptocurrency exchange, etc., receives the Bitcoin and Bitcoin Cash on behalf of the rehabilitation creditors, or (ii) repayment in cash equivalent to the sale proceeds of Bitcoin and Bitcoin Cash.

Additionally, although there have been inquiries and concerns about the storage of Bitcoin and Bitcoin Cash, the trustee has not yet sold any Bitcoin or Bitcoin Cash for the purpose of repayments as of now. The trustee is currently managing the Bitcoin and Bitcoin Cash safely.

We will continue to make preparations for the execution of the aforementioned repayments. Please wait for a while until the repayments are made.