Bitcoin Rally Pauses as Mt. Gox Transfers $1B in BTC to Unknown Address

A wallet tied to the bankrupt crypto exchange Mt. Gox has once again moved a massive number of bitcoins (BTC) as the entity’s creditor repayment plans come to fruition.

Data from the market intelligence platform Arkham revealed that the Mt. Gox wallet labeled 1PuQB transferred 11,834 BTC worth approximately $1.07 billion to an unknown address tagged 1Mo1nW.

Mt. Gox Moves $1B BTC

The Mt. Gox wallet executed the transaction around 03:17 UTC on March 6. It is worth mentioning that the defunct firm also sent another 166.5 BTC worth $15.12 million to its cold wallet labeled 1Jbez.

The last time Mt. Gox made such a large transfer was in early December 2024, around the same time BTC crushed $100,000 for the first time. The entity moved 27,871 BTC, worth around $2.8 billion per bitcoin’s price at the time, to an unidentified address.

Although wallets tied to Mt. Gox have executed several transfers since then, none have been as massive as its latest one. On December 19, the bankrupt firm moved bitcoins worth $100 million to three separate addresses. Another $89 million worth of assets followed suit on December 23, while the last transfer on January 30 totaled $420,000.

On previous occasions, large transfers from Mt. Gox have triggered bearish sentiment among market participants. Bitcoin has often reacted negatively as traders become wary of a potential sell-off following such large movements.

However, the leading cryptocurrency has shown little to no reaction to the news this time, even though it was stopped at almost $93,000. For now, it remains above $91,000.

Creditor Repayments Ongoing

Undeniably, the transfers from Mt. Gox’s bitcoin wallet are part of the entity’s ongoing repayment efforts. Once the largest BTC exchange over a decade ago, Mt. Gox started having financial troubles after a series of attacks saw around 950,000 BTC vanish from the platform.

In July 2024, the Mt. Gox trustee began creditor repayments using BTC and Bitcoin Cash (BCH), with a redistribution deadline set for October of the same year. However, the trustee eventually extended the deadline to October 2025, citing several reasons, including incomplete procedures by numerous creditors.

Additionally, Mt. Gox mentioned a system error that caused double deposits for some creditors as part of the reasons for the deadline extension. So far, around 17,000 creditors have received their repayments, with more to be settled in the coming months.