Mt. Gox Makes Good on Old Promise, Finally Starts Bitcoin and Bitcoin Cash Redemptions After 10 Years
After a long wait of almost a decade, Mt. Gox has finally started paying back affected customers. The once-mighty crypto exchange, which collapsed in 2014 after a major hack, announced on Friday that the first payments have been made.
A dive into the past
Mt. Gox was once the biggest player in the crypto world. In the early years of Bitcoin, the exchange processed a whopping 70% of all BTC transactions worldwide. Unfortunately, the company went bankrupt after hackers stole some 740,000 Bitcoin in 2014.
Small movements, big meaning?
According to Arkham Intelligence There were multiple transactions in the 24 hours from three wallets previously associated with Mt. Gox. The largest transaction was just $24 worth of bitcoin. While the amounts are modest, the timing is notable given that payments are beginning to be made to affected customers. This transaction may have served as a test transaction.
Mysterious destination
One of the transactions sent a small amount to Bitbank, one of five exchanges designated to handle repayments to creditors. However, it’s unclear whether this particular transaction was a test for sending larger amounts, as it didn’t involve funds from Mt. Gox’s main wallets.
Justice at last?
The announcement of the refunds comes a month after Mt. Gox announced it wanted to start in July. For many affected parties, this means the end of a protracted process that has lasted almost a decade.
New transaction
Arkham Intelligence reported in a post on X that a cold storage wallet of Mt. Gox moved 47,228 BTC to a wallet address ending in “6onk”. A different address than the destination of the possible test transaction. It is possible that this transaction plays a role in the initiated refunds.
Experts put impact into perspective
Willy Chuang, COO of crypto exchange WOO X, puts the events in perspective: “Mt. Gox moved 47,228 BTC, raising concerns about a potential major sell-off. However, we believe the long-term effects will be less severe as the market will gradually absorb the selling pressure.”
In the short term we may well see some fluctuations, but most experts expect the effect of this repayment to remain limited. Especially when we look at the long term.
