Ramazan Eles Large Bitcoin transfers from Mt. Gox wallets to unknown addresses triggered panic among investors, leading to a sell-off that pushed the Bitcoin price down from above $70,000 to around $67,400.
In an attempt to ease concerns, Mt. Gox’s former CEO, Mark Karpeles, clarified that the transfers were not indicative of an immediate Bitcoin sale. He explained that the transfers were part of the ongoing process of managing Bitcoin reserves for the upcoming creditor repayments scheduled for this year.
Mt. Gox Official Statement Reinforces
An official statement from Mt. Gox further reinforced Karpeles’s remarks, emphasizing that no direct BTC or BCH repayments have been made and that there are no plans for immediate sales of these assets. The Rehabilitation Trustee, currently overseeing the Bitcoin and Bitcoin Cash, assured users that the funds are being held securely.
Following the reassuring statements from Karpeles and Mt. Gox, the Bitcoin price started to recover, climbing back to around $68,500 at the time of writing.
Mt. Gox Background: A Longstanding Saga
In 2014, Mt. Gox, a Japanese cryptocurrency exchange, filed for bankruptcy after hackers stole 850,000 Bitcoins, leaving many investors with substantial losses.
After years of legal battles, an old Mt. Gox wallet containing 200,000 Bitcoins resurfaced, offering a glimmer of hope for creditors. The Tokyo District Court appointed a trustee to oversee the distribution of these funds to affected users.
The distribution plan is designed to minimize the impact on the Bitcoin market by spreading out the repayments over time. This approach aims to prevent a sudden surge of supply that could trigger another price crash.