Mt. Gox Transfers $932M in BTC, Crypto Market Cap Drops 10%

Mt. Gox, the defunct cryptocurrency exchange, recently transferred 11,833 BTC, valued at approximately $932 million, sparking concerns within the crypto market. This movement of funds comes at a time when the overall crypto market has been experiencing a decline, with its market cap dropping to $2.44 trillion on Tuesday, the lowest point since early November. The transfer triggered over $937 million in liquidations within a 24-hour period, adding to the market's volatility.

The transfer included 11,502 BTC, worth around $885 million, to a new wallet and 332 BTC, valued at $25.5 million, to a “warm” wallet. This warm wallet is typically used for transactions or active management of funds, suggesting that Mt. Gox may be preparing for further distributions or repayments to its creditors. The funds were moved from the Mt. Gox wallet “1Mo1n,” which had previously received $1.07 billion in Bitcoin from another exchange the week before.

The movement of Mt. Gox’s Bitcoin is closely monitored because it is part of the ongoing process of repaying creditors who lost funds in the exchange’s infamous hack and subsequent bankruptcy. Just five days prior to the recent transfer, Mt. Gox sent 166.5 BTC to BitGo, a digital asset custodian, likely as part of the creditor repayment process. The recent transfer of 332 BTC is also expected to be moved soon, possibly as part of further repayments.

The potential impact of these transfers on the broader crypto market is significant. If creditors decide to sell their repaid Bitcoin, it could flood the market with large amounts of the cryptocurrency, leading to increased volatility. Creditors of Mt. Gox have been waiting for years to receive their funds, and their decisions on whether to sell or hold the repaid Bitcoin will play a crucial role in shaping the market's future.

Mt. Gox began repaying its creditors in July 2024 using its holdings of 142,000 BTC, 143,000 Bitcoin Cash, and 69 billion yen. While some creditors have already been paid through exchanges like Kraken and Bitstamp, the repayment deadline has been