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Bitcoin dips below $68k as Mt. Gox moves billions to unknown address

According to Look on Chain analysts, one of the earliest Bitcoin exchanges Mt. Gox has moved billions worth of crypto to an external address for the first time in years.

Mt. Gox, which once dominated the crypto trading landscape by handling over 70% of global Bitcoin transactions, transferred approximately $3 billion in Bitcoin (BTC) to an unknown address.

According to data from blockchain analytics firm Lookonchain, the exchange moved over $2.9 billion worth of BTC to 1Jbez…LAPs6. The funds have since remained unmoved from this address.

Mt. Gox’s holdings | Source: Arkham Intelligence

Following the transfer, the exchange’s associated wallets now hold approximately 137,892 BTC, with a current valuation of around $9.3 billion according to Arkham Intelligence.

Amid the news, Bitcoin price slid below the $68,000 mark and the cryptocurrency is now trading at $67,790, as per CoinGecko.

Founded in 2010 in Japan, it quickly grew to become the world’s largest Bitcoin exchange. However, the success was short-lived as in early 2014, the Tokyo-based platform abruptly halted trading, shut down its website, and filed for bankruptcy protection, revealing that it had lost approximately 850,000 BTC, worth about $450 million at the time. Subsequent investigations revealed that the majority of these Bitcoins had been stolen over several years, starting as early as late 2011, from the exchange’s hot wallets.

The exchange’s bankruptcy proceedings have been long and complicated, to say the least. Nonetheless, the resolution is understood to be near, with Mt. Gox potentially beginning payouts to creditors as early as the second half of 2024. The total distribution could be substantial, with estimates suggesting that repayments might reach up to $2 billion.

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