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Mt. Gox Repayment Continues 33% Remaining With Latest Test Transactions

Key Points:

A Bitcoin wallet linked to the Mt. Gox exchange began test transactions on August 13, marking the start of the repayment process for creditors.
Over 67% of the Mt. Gox repayment is complete, with no significant market impact observed despite over $3.2 billion in Bitcoin being allocated to creditors.

A Bitcoin wallet identified with Mt. Gox has begun making test transactions in what can be seen as part of the long-awaited repayment to those who had money in the exchange.

New Test Transactions Confirm a New Mt. Gox Repayment

This wallet, one among those linked to Mt. Gox, received 33,105 BTC from Mt. Gox only about two months or slightly longer. At that time, the amount of Bitcoin was around $2.2 billion, while currently, it is $1.95 billion after the price corrections.

Bitgo, widely assumed to be behind the wallet, sent through a small test transaction of Bitcoin amounting to $5.88 on August 13. Bitgo now brings to five the number of exchanges involved in coordinating Mt. Gox repayments to the creditors in Bitcoin and Bitcoin Cash (BCH). This is one huge step towards finally distributing these long-awaited funds.

67% of Mt. Gox Repayment Process Completed with No Market Impact

Around 67.7% of the Mt. Gox repayment process has been completed, CryptoQuant data shows. The market price of Bitcoin has not been affected as repayments to creditors are going to exceed $3.2 billion in BTC upon completion.

The Mt. Gox repayment process has been closely monitored following its announcements. A report released by Glassnode at the end of July went further to say that this happening is the final chapter in the major market overhang over the industry since 2013. Over 127,000 creditors will finally recover their funds from the failed exchange over a decade ago.

In July, Mt. Gox finally reported that it was beginning to repay the debt through other exchanges: Kraken, Bitstamp, and Bitgo. The amount of debt recycling on the creditor’s list exceeds $9.4 billion—a far echo of a long-lasting financial story in the world of cryptocurrency.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.