$9.8B Bitcoin Moved Out of Mt.Gox, What Could Be the Reason?

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In a surprising move, $9.8 billion worth of Bitcoin (BTC) was recently consolidated into a single wallet from multiple wallets linked to the defunct Japanese Bitcoin exchange Mt.Gox. This consolidation occurred without prior notice from the Mt.Gox Trustee, raising concern among creditors still awaiting compensation for their lost assets.

Mt.Gox Working on Repaying its Creditors

Mark Karpeles, the former CEO of Mt.Gox, addressed the situation in an X post, stating that the consolidation of Bitcoin is part of the preparation for the upcoming distribution to creditors. Karpeles reassured that this movement is a step towards fulfilling the repayment obligations and that there is no cause for alarm.

Likewise, the Trustee released a statement confirming that the preparation of the repayment of the Bitcoin to creditors is indeed underway. Depending on the creditor’s choice, the trustee confirmed that the bitcoin and bitcoin cash will be distributed as cryptocurrency or sold for fiat money. Some creditors have asked that the exchange pay them in fiat currency. However, the Trustee affirmed that the exchange had not sold its bitcoin and bitcoin cash for these creditors.

Mt.Gox Users Receive Updates on Their Claims 

Although the timing of the payout remains uncertain, the progress made thus far provides renewed hope for creditors who have endured years of uncertainty and frustration. According to some of the Mt.Gox creditors, updates have been sent regarding their claims. The update also includes the total number of digital tokens to be refunded and to some creditors, the repayment deadline.

The payment to the creditors will be made in multiple installments. According to a user in December 2023, only part of his 0.125 BTC was repaid. The user received 30,283 yen (worth $200 at the current exchange rate leaving a balance of about $748).

Mt.Gox Shares Repayment Schedule

The recent development signifies the initial phase of repayment for all creditors. Notably, in September, Nobuaki Kobayashi, the trustee recovering funds on behalf of Mt.Gox formally adjusted the repayment deadline for rehabilitation creditor payments from October 31, 2023, to October 31, 2024.

At the time, the trustee said it acquired the approval of the Tokyo District Court, to revise the deadlines for Base Repayment, Early Lump-Sum Repayment, and Intermediate Repayment. Additionally, Kobayashi explained that for rehabilitation creditors who had supplied the required information, repayments would commence as early as the year’s end.

Recall that the platform had extended the window for registration to allow users interested in the Early Lump-Sum Repayment to complete their registration.

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