A massive outflow of Bitcoin (BTC) has occurred from the defunct cryptocurrency exchange, Mt. Gox. In a span of just two hours on July 23, 2024, over 47,500 BTC, valued at approximately $3.2 billion, was transferred to unknown addresses.

This significant movement has drastically reduced Mt. Gox’s Bitcoin holdings. While the exchange previously held around 90,344 BTC, its current reserves are estimated to be around 42,744 BTC, worth roughly $2.85 billion.

These transactions are part of Mt. Gox’s ongoing efforts to repay creditors following its bankruptcy. On July 5, the exchange announced plans to promptly distribute funds to those affected by the 2014 hack.

How the Outflows Happened

Two Main Outflows: The majority of the Bitcoin, approximately 42,587 BTC, was sent to an unknown address beginning with “15yPU.” Another 5,110 BTC was divided between an anonymous wallet starting with “1JKMS” and the cryptocurrency exchange Bitstamp.

Bitstamp Involvement: Mt. Gox has been working with several exchanges, including Bitstamp, to facilitate repayments to creditors. Recent on-chain activity indicates preparations for these payouts.

Massive Overall Outflow: Since July 16, Mt. Gox has transferred over $12 billion worth of Bitcoin. This includes a previous large outflow of 140,000 BTC on that date.

While the exact destinations of the Bitcoin remain unknown, these rapid transfers signify substantial progress in the repayment process. It’s important to note that there has been speculation about creditors potentially selling their recovered Bitcoin, but this hasn’t been confirmed on a large scale.

As the repayment process continues, the cryptocurrency community will be watching closely to see how the market reacts to the influx of Bitcoin from Mt. Gox.

Would you like to know more about the potential impact of these outflows on the Bitcoin market, or perhaps delve deeper into the history of the Mt. Gox hack?