Speculation Over Bitgo’s Role in $2.1B BTC Distribution as Dormant Mt. Gox Wallet Activates

Mt. Gox wallet holding over $2.1 billion in Bitcoin executed a test transaction at 10:57 UTC after two weeks of dormancy

Journalist Hassan Shittu Journalist Hassan Shittu About Author Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in... Author Profile Share Copied Last updated: August 13, 2024 00:58 EDT

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A dormant wallet of Mt. Gox, a defunct exchange, holding over $2.1 billion in Bitcoin has sparked intense speculation after initiating a test transaction. This has raised some questions about the ongoing Bitcoin distribution to creditors.

The Mt Gox’s wallet which was widely believed to be managed by Bitgo, a key player in the rehabilitation process, is now closely watched by the community.

This activation comes at a critical time as the long-awaited distribution of Mt. Gox’s assets nears completion, with the implications potentially significant for both creditors and the broader market.

Bitgo Test Transaction: Final Payout Looming?

The Mt. Gox wallet, identified by its address “bc1q26”, executed a test transaction at 10:57 UTC after two weeks of dormancy.

This wallet, which currently holds 33,105 Bitcoin valued at approximately $1.96 billion, has been linked to Bitgo, the final exchange responsible for distributing funds to Mt. Gox creditors.

The wallet had previously received these funds on July 30, when Bitcoin’s value was higher, amounting to $2.19 billion.

Despite the subsequent decline in Bitcoin’s price, the wallet’s reactivation through a test transaction has triggered widespread interest and speculation about the next steps in the distribution process.

According to data from Arkham Intelligence, Bitgo’s involvement in the distribution is critical to the ongoing efforts to return funds to Mt. Gox creditors.

JUST IN: MOVEMENTS FROM $1.95B MT GOX BTC WALLET

A Wallet that received $2.19B Bitcoin from Mt. Gox has just initiated test transactions.

This wallet bc1q26 is likely Bitgo, the 5th and final exchange working with Mt. Gox Trustee to distribute funds to Mt. Gox creditors.

Are… pic.twitter.com/w0j2aCg2Gc — Arkham (@ArkhamIntel) August 13, 2024

The wallet’s sudden activity could signal the imminent commencement of final payouts or further tests before a large-scale transfer.

CryptoQuant’s data also shows that approximately 67.7% of the distribution process has been completed, with many creditors still awaiting their funds.

Despite the anticipation surrounding the potential sell-off of these distributed assets, the market has remained relatively stable, with no significant price drop observed.

Mt Gox’s Final Payout: Incoming Bitcoin Price Swing

The Mt. Gox exchange, once the largest Bitcoin exchange globally, collapsed in 2014 after losing 850,000 BTC due to a massive hack, leading to its bankruptcy.

For over a decade, creditors have awaited the return of their locked-up assets, a process fraught with legal and logistical challenges.

In July 2024, Mt. Gox announced it would begin repaying its debts to creditors in Bitcoin and Bitcoin Cash, following a rehabilitation plan that involved several designated crypto exchanges, including Kraken, Bitstamp, and Bitgo.

The crypto community has been closely monitoring this process, as the release of such a significant amount of Bitcoin could potentially impact the market.

However, the anticipated sell-off has not materialized, with creditors showing restraint despite the large sums involved.

A recent report by Glassnode suggested that the final chapter of this long-running saga could lift a substantial overhang on the market, bringing closure to one of the most significant events in cryptocurrency’s history.

Bitgo’s role in the distribution, particularly its handling of the 33,105 BTC wallet, is now a focal point as the process ends.

The ongoing activity within this wallet suggests that Bitgo is conducting final preparations before distributing the remaining funds to creditors.

With over $9.4 billion worth of Bitcoin still owed to Mt. Gox creditors, completing this distribution marks a crucial milestone for those directly involved and the entire cryptocurrency ecosystem.

Notably, Mt. Gox has completed initial Bitcoin payouts to creditors through Kraken and Bitstamp, despite some withdrawal difficulties that have now been mostly resolved.

The exchange recently moved Bitcoin worth $5.52 billion through a series of transactions, including $2.85 billion to an undisclosed wallet and another $2.47 billion from cold storage to an unknown address, while internally shifting portions of its holdings between cold wallets.