Mt. Gox has shaken the crypto world by making a staggering $7.3 billion transfer in Bitcoin to an unknown wallet.
The move, which is the first in five years, has sparked renewed fears over how the exchange is handling assets and what this means for the market.
The transfer, which consisted of 107,547 BTC, sent shockwaves through the cryptocurrency market as Bitcoin dropped 2% in price. Transactions for the transfer ranged from 3,999 BTC to 32,499 BTC, hinting at other possible movements from Mt. Gox’s wallets.
Mark Karpeles, the former CEO of Mt. Gox, a key figure in this unfolding drama, has taken to social media to address the situation. Under his online moniker MagicalTux, Karpeles reassured the community that ‘everything is fine’ with the exchange. He also clarified that the transfer was part of the preparations for the upcoming distribution of assets to creditors, scheduled for later this year.
However, Karpeles emphasized that there is no sale of bitcoins in the pipeline, seeking to downplay the fears of an imminent supply shock in the Bitcoin market. Despite his reassurances, the industry’s reaction to the news underscores the lingering fear regarding Mt. Gox’s handling of assets.
The move comes as Mt. Gox prepares to return Bitcoin to creditors as part of its rehabilitation. The exchange owes more than $9.4 billion to an estimated 127,000 creditors.
Mt. Gox’s tumultuous history dates back to 2014 when it crashed after losing over 800,000 BTC in a series of unnoticed hacks. Once the world’s largest Bitcoin exchange, Mt. Gox accounted for 70% of all Bitcoin trades by 2013, making its rehabilitation efforts important for the cryptocurrency ecosystem.
As Bitcoin’s price bounces back above $68,500 after the announcement by Karpeles, the crypto world very keenly waits in anticipation of stability amidst the uncertainty of Mt. Gox’s actions.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
