Mt. Gox is gearing up to repay creditors through the Bitstamp cryptocurrency exchange, as indicated by recent onchain fund movements.
The Mt. Gox address has initiated test transactions to Bitstamp’s cold wallets.
Blockchain intelligence firm Arkham Intelligence identified these transactions in a July 22 X post.
“Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments […] These transfers are likely to represent test transactions.”
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors who have been waiting for over 10 years to recover their funds.
Some crypto investors worry about the sell pressure that Mt. Gox repayments might introduce, potentially driving Bitcoin’s price down.
Many Mt. Gox creditors may sell their Bitcoin, which has appreciated by over 8,500% in the decade since the exchange collapsed.
Finance analyst Jacob King suggested on July 4 that up to 99% of creditors might sell their BTC. He stated in an X post:
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“99% of those on Mt. Gox are going to sell their coins the moment they get it.
“Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks.
“There is no way to spin this to be bullish, or news that could offset this.”
Contrary to this, a Reddit poll indicates that 56% of Mt. Gox creditors plan to hold their Bitcoin, while about 20% intend to sell.
As of July 17, over 36% of the Bitcoin owed to Mt. Gox creditors had been distributed. Despite concerns about sell pressure, large Bitcoin holders — called whales — continued buying. On July 17, a whale purchased 245 BTC, worth nearly $16 million.
This address has traded Bitcoin only twice this year, profiting over $30 million from these trades.
According to Arkham Intelligence, the Mt. Gox-labelled wallet currently holds over 90,300 BTC worth $6.12 billion.
While the exact timing of the repayments is unclear, today’s test transactions suggest final preparations before repaying creditors on Bitstamp.
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