Bitcoin Price Surges Following Transfer of $2 Billion in Mt. Gox Repayment Funds

Bitcoin’s price is surging once again as Mt. Gox’s Bitcoin billions are on the move, according to data from blockchain tracking firm Arkham Intelligence. The firm flagged on-chain movements from a crypto address that had previously received over $2 billion in Bitcoin from the collapsed exchange.

Arkham reported that the address had initiated test transactions in preparation for expected repayments to affected users, followed by the transfer of the entire balance of more than 33,000 BTC (equivalent to $2 billion at the current price) to another wallet. The address is believed to be associated with crypto firm BitGo, one of the entities responsible for reimbursing customers who lost their Bitcoin in the hack over a decade ago.

Other exchanges such as Bitbank, Bitstamp, Kraken, and SBI VC Trade have also begun compensating customers who lost funds in the hack. The distribution of coins has caused the price of Bitcoin to fluctuate in recent weeks, with concerns arising about potential future selling when large quantities of Bitcoin are moved.

Despite the price fluctuations, Bitcoin saw a notable increase in value following the recent movement of funds. The cryptocurrency is now trading at over $61,000, marking a 3% rise within an hour from its previous price of around $59,500.

While Bitcoin’s price has rebounded, it remains below its all-time high of nearly $74,000 reached in March. The price briefly dropped below $50,000 just over a week ago. Mt. Gox, once a prominent Bitcoin exchange based in Japan, fell victim to hackers who stole 850,000 digital coins through an ongoing exploit, leading to the exchange’s closure in 2014 after declaring bankruptcy.

Law enforcement efforts eventually recovered 140,000 Bitcoins from the hack. Former customers are now in the process of reclaiming their funds under a rehabilitation plan approved in 2021. The recent movements of Mt. Gox’s Bitcoin holdings have stirred market activity, impacting Bitcoin’s price and the broader cryptocurrency landscape.

The article has been edited by Andrew Hayward.