Mt. Gox Begins Mass BTC Transfers

Mt. Gox transferred some $3.1 billion worth of BTC to new addresses ahead of its upcoming creditor payouts.

What's the scoop?

• Kraken Receives Funds: Kraken, one of the exchanges participating in redistribution, reported receiving BTC and Bitcoin Cash (BCH) transfers from the Mt. Gox Rehabilitation Trustee, with users also receiving emails about receiving tokens in 7-14 days.
• Impending Repayments: The movements come ahead of approximately $9B worth of Bitcoin repayments to creditors, recovered from the exchange's 2014 bankruptcy after 850K BTC were stolen.
• Market Reaction: During the transfers, Bitcoin's price dropped from $65K to as low as $62.5K, but it has since recovered to $64K.

Bankless take:

The shock absorption of Bitcoin’s drop following these movements, which previously led to cascades, signals promising things are ahead for price action. Regardless of what happens in the short term to BTC and BCH asset prices, we should all take a second to reflect on how historic of an event these repayments are, coming an entire decade after the initial hack. This year has certainly been one of our industry’s most significant years ever and as crypto eyes more political attention in the U.S. Presidential elections, there could be more happening ahead.