Mt. Gox, the now-defunct crypto exchange, made a massive transfer of approximately $1 billion worth of Bitcoin (BTC) as part of its ongoing repayment efforts to creditors.

According to recent reports from the blockchain analysis platform, Arkham, a cold wallet moved about 10,608 bitcoins to an unknown address and 893 bitcoins to the Mt. Gox hot wallet. The total value of the Bitcoins transferred was approximately US$1.01 billion. 

The recent transfer was facilitated by the Mt. Gox trustee Nobuaki Kobayashi, who has been overseeing the exchange’s bankruptcy proceedings. The trustee has been working to repay creditors who lost funds in the exchange’s collapse.

Mt. Gox Infamous Downfall

Mt. Gox saga has been a major controversy in the cryptocurrency space, with many calling for greater transparency and accountability in the industry. The infamous cryptocurrency exchange filing for bankruptcy in 2014 was one of the major events that shook the space, and it led to widespread concerns about the security and reliability of crypto exchanges.

The crypto exchange, based in Shibuya, Tokyo, Japan, was launched in 2010. In its early stage, Mt. Gox controlled over 70% of all Bitcoin transactions worldwide until the exchange suffered a series of thefts. 

According to the platform, the losses, up to hundreds of thousands of bitcoins, incurred from the thefts led it to abruptly cease operations. In February 2014, Mt. Gox filed for bankruptcy protection from creditors and started its liquidation proceedings two months later.

Considering its profound influence on the industry, the news of Mt. Gox’s bankruptcy led to a massive price correction in the market. However, the platform agreed to pay its debts to its customers.

Mt. Gox’s Repayment Plan Continues

Last year, Mt. Gox announced it would start its compensation payouts in July, and since then, the trustee has been selling off the platform’s remaining BTC holdings to raise funds for creditors. 

The repayment process has been slow and complex, hindered by various legal and technical hurdles. The plan has also periodically caused market disruptions with each new development.

The latest transfer is seen as a positive development for Mt. Gox’s creditors, who have been patiently waiting for repayment.