Final Mt. Gox repayments near as BitGo moves $2b in Bitcoin

BitGo, the fifth and final crypto exchange working with the Mt. Gox Trustee, has made on-chain Bitcoin transactions ahead of creditor repayments.

BitGo wallet labeled “bc1q26” transferred 33,105 Bitcoin (BTC) worth around $2 billion, on Aug. 12, according to Arkham data tracking Mt. Gox cryptocurrencies.

Observers noticed the move following an earlier test transaction by BitGo, a common practice in web3 before sending major funds. Test transactions help to confirm the destination wallet and prevent the loss of assets.

BitGo’s BTC transfer is likely the last step before Mt. Gox users receive updated BTC balances. Kraken and Bitstamp underwent similar processes during creditor distributions.

So far, Mt. Gox has settled less than $6 billion of user reimbursements. The defunct BTC exchange plans to repay $9 billion in crypto after multiple hacks between 2011 and 2014.

Per crypto.news, approximately 20,000 creditors expect to receive Bitcoin and other crypto in the coming days and weeks. A Tokyo bankruptcy court set October 2024 as the deadline for the platform’s Trustee to execute its repayment plan.

After transfers to five crypto custodians, Mt. Gox still holds over $3 billion in BTC. The platform likely intends to disburse this trove to users as well.

Further Mt. Gox repayments, and possible user selloffs, could spike volatility and trigger short-term BTC price swings. At press time, the leading cryptocurrency was trading at $59,500, down less than 1%, while the broader digital asset market dropped to $2.18 trillion.