Mt. Gox Transfers $172.5M in Bitcoin Amid Historic Price Levels

Yigit Taha OZTURK — Tue, 17 Dec 2024 11:30:26 +0000

The defunct crypto exchange Mt. Gox, which declared bankruptcy in 2014, moved approximately $172.5 million worth of Bitcoin (around 1,620 BTC) to unknown wallets on December 17. This transfer coincided with Bitcoin’s surge past the $107,000 mark.

Key Details of the Transfer

According to Arkham Intelligence, the transferred Bitcoin was split across two addresses: A portion of 1,427.9 BTC was routed through multiple wallets and ultimately reached a wallet beginning with “1DeY”. Meanwhile, 191.7 BTC and another 108 BTC moved through various addresses before accumulating in a wallet starting with “1KLr”, which now holds a total of 300 BTC.

This activity follows a similar transfer on December 5, when Mt. Gox moved 24,000 BTC (worth $2.5 billion at the time) to an unknown address, just as Bitcoin crossed the $100,000 threshold for the first time.

Bitcoin Holdings and Creditor Payments

Arkham Intelligence data reveals Mt. Gox still holds 36,085 BTC, valued at approximately $3.86 billion at current prices. Mt. Gox creditors are eligible to receive their repayments in Bitcoin, but the repayment deadline was extended in October 2023 to October 31, 2025. The delay stems from many creditors failing to complete the necessary repayment procedures.

Market Impact

Historically, large transfers from Mt. Gox wallets trigger concerns of selling pressure in the market. However, this latest movement had no apparent effect on Bitcoin’s price.

As of December 16, Bitcoin remained stable around $106,500, briefly reaching a new peak of $107,857. Despite its collapse in 2014, Mt. Gox still holds significant Bitcoin reserves, and any movement of these funds remains closely watched by market participants.

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The post Mt. Gox Transfers $172.5M in Bitcoin Amid Historic Price Levels appeared first on Coin Engineer.

FTX to Begin Distributing Payments in 2025

Yigit Taha OZTURK — Tue, 17 Dec 2024 10:11:35 +0000

FTX debtors have announced that the reorganization plan enabling customer repayments will take effect on January 3, 2025, marking a significant step in the exchange’s bankruptcy proceedings.

The first group of FTX creditors can expect their repayments within 60 days of January 3, 2025, under certain conditions. Kraken and BitGo will assist in distributing recovery payments to users. A third undisclosed distributor will also be involved.

FTX CEO John J. Ray III urged customers to complete the necessary steps to receive distributions on time. Under the bankruptcy plan, priority will be given to “convenience classes,” which include claims of $50,000 or less.

Bankruptcy Overview

FTX filed for Chapter 11 bankruptcy protection in November 2022 following a liquidity crisis and the resignation of then-CEO Sam Bankman-Fried. The case led to indictments of several executives, including Bankman-Fried, who is currently serving a prison sentence.

In October 2023, the court approved a plan to allow FTX debtors to repay customers up to 119% of their claimed account values.

FTX’s estate has taken legal action to recover funds used for political contributions and has pursued lawsuits against firms holding assets linked to the exchange. These reclaimed funds are expected to aid in user repayments.