On Tuesday, Mt. Gox transferred over $2 billion in Bitcoin as its price fell to $66,853. Despite these movements, $810 million remains in its wallets. The exchange’s repayment process, initiated in July, is nearing its end, with a new deadline set for October 2025. Former CEO Mark Karpeles is planning to launch a new exchange called EllipX.

On Tuesday, over $2 billion worth of Bitcoin was transferred from wallets linked to the defunct Mt. Gox exchange to three new addresses, according to the cryptocurrency analytics firm Spot On Chain. Concurrently, the price of Bitcoin experienced a decline, reaching a low of $66,853, as reported by CoinGecko. Despite these new transactions, approximately $810 million in Bitcoin remains in known Mt. Gox wallets. This recent development follows an extended period of repayments initiated by Mt. Gox, which began in July. Customers of the exchange endured nearly a decade of waiting for their funds, resulting in over $6 billion worth of Bitcoin and Bitcoin Cash being distributed in the months of July and August. Currently, Mt. Gox holds about 30% of its initial cryptocurrency holdings, signifying that the repayment process is nearing completion and is expected to alleviate future selling pressure on Bitcoin. However, the trustee managing the repayment process has announced a revised deadline, extending it to October 31, 2025. This extension is attributed to numerous creditors yet to complete necessary procedures to claim their repayments, alongside complications encountered during the distribution. Meanwhile, Mark Karpeles, the former CEO of Mt. Gox, announces plans to launch a new exchange named EllipX. He remarked that modern security technologies, such as hierarchical deterministic wallets, could have prevented the earlier hack of Mt. Gox.

Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 after suffering a major hack that compromised customer funds. As a result, the exchange entered bankruptcy proceedings, with an overwhelming number of creditors awaiting repayment of their assets. In the years that followed, the trustee began a complex process of liquidating assets and repaying creditors, causing significant fluctuations in Bitcoin’s price. The recent transfers of funds have reignited discussions about the potential impact of such movements on the overall market, particularly given Bitcoin’s trading volatility.

In conclusion, the significant transfers of Bitcoin from Mt. Gox wallets amidst a price drop underscore ongoing challenges within the cryptocurrency sector. While the repayment process is nearing completion, creditors are still navigating procedural hurdles. The upcoming launch of EllipX by Mark Karpeles marks a new chapter for the former CEO, emphasizing the continuous evolution and risks associated with the cryptocurrency market.

Original Source: u.today

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