Mt. Gox Moves $2.2B into Bitcoin After Extending Refund Deadline

Mt. Gox also moved $2.2 billion worth of Bitcoin on Monday amid an extended period of volatility that has seen the crypto hover between $73,000 and $65,000 in recent weeks.

The defunct cryptocurrency exchange’s recent transfer was identified through wallets tracked by blockchain analytics firm Arkham Intelligence, which disclosed the movement of 32,371 BTC, the majority — 30,371 BTC — directed to the wallet address “1FG2C…Rveoy”.

Another 2,000 BTC were initially moved to a Mt cold wallet. Gox before being transferred to a separate unmarked wallet, the Arkham data shows.

It comes as Bitcoin briefly dipped below $68,000 during Asian market trading, down 1% in 24 hours. The asset has since recovered its losses, trading at $68,700.

Market analysts anticipate increased volatility this week, projecting potential price swings of up to $8,000 as US election activity adds to market uncertainty.

Monday’s significant move also follows a transfer of less than 500 BTC to two unidentified wallets in late September, which marked the exchange’s first activity since then.

These transfers historically precede distributions to creditors via established cryptocurrency exchanges, including Bitstamp and Kraken.

Notably, the timing of this latest transfer coincides with the recent announcement of Mt. Gox that it is extending its refund deadline by a year.

This extension affects thousands of lenders who lost assets during the exchange’s security breach in 2014, which led to the theft of approximately 850,000 BTC – valued at more than $15 billion at current market prices.

The historical significance of Mt. Gox in the crypto industry ecosystem adds weight to these moves as well.

Founded in 2010, the exchange once dominated Bitcoin trading, handling more than 70% of global transactions before its collapse after a series of hacks between 2011 and 2014.

The security breach marked one of the industry’s biggest failures, leading to years of legal proceedings and recovery efforts.

In any case, the refund process represents one of the cryptocurrency industry’s longest recovery efforts, with implications that extend beyond immediate market dynamics.

While short-term volatility is to be expected, the maturity of the market since the collapse of Mt. Gox since 2014 can help protect against the dramatic price swings Bitcoin often displays resistance against such events.

Edited by Sebastian Sinclair