Mt. Gox, which once handled over 70% of global Bitcoin transactions, recently transferred approximately $3 billion in Bitcoin (BTC) to an unknown address.

Blockchain analytics firm Lookonchain reported that the exchange moved over $2.9 billion worth of BTC to address 1Jbez…LAPs6, where the funds have since remained unmoved.

Following the transfer, Mt. Gox’s wallets now hold around 137,892 BTC, valued at approximately $9.3 billion according to Arkham Intelligence.

Mark Karpeles, the former owner of Mt. Gox, reassured, “As far as I know, everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening.”

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In response to the news, Bitcoin’s price dropped below $68,000, currently trading at $67,790 as per CoinGecko.

Will Mt. Gox Payouts Spark a Bitcoin Crash?

Founded in 2010 in Japan, Mt. Gox quickly became the world’s largest Bitcoin exchange. However, in early 2014, the Tokyo-based platform halted trading, shut down its website, and filed for bankruptcy protection, revealing the loss of approximately 850,000 BTC, worth about $450 million at the time. Investigations found that most of these Bitcoins had been stolen from the exchange’s hot wallets over several years, starting as early as late 2011.

The bankruptcy proceedings have been long and complicated. However, a resolution seems near, with Mt. Gox potentially starting payouts to creditors as early as the second half of 2024. Estimates suggest repayments might reach up to $2 billion.