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Mt. Gox Holds $3 Billion in Bitcoin After BitGo Transfer
Mt. Gox trustee sent $2.25 billion in Bitcoin to two BitGo addresses as part of $9 billion creditor repayment plan.
After sending about $3 billion in Bitcoin (BTC) to Kraken and at least $335.8 million to Bitstamp; the defunct cryptocurrency exchange Mt. Gox also settled transfers to BitGo on July 31.
Previously it was unclear where the platform transferred the funds as crypto.news reportedHowever, the Trustee’s emails to users cited on a subreddit nicknamed “mtgoxinsolvency” and Akrham Intelligence confirmed that the recipient was BitGo.
Users said BitGo balances did not reflect the payouts at press time. BTC initially fell below $66,000 after news of the transfers to BitGo, but the cryptocurrency quickly recovered from its losses and resumed trading above $66,500.
BTC 24-hour chart as of July 31 | Source: crypto.news
BitGo was the fifth and final custodian appointed to handle creditor repayments after a 10-year waiting period. Following a series of cyber attacks between 2011 and 2014, over 20,000 users waited over a decade for repayment.
Mt. Gox held approximately 46,160 BTC worth over $3 billion after the trustee transferred Bitcoin and other cryptocurrencies like Bitcoin Cash (BCH) on Kraken, Bitstamp, BitGo and two other cryptocurrency exchanges.
With data reporting that the defunct trading venue has cleared just over $5.5 billion in BTC refunds, it is possible that the $3 billion in Bitcoin outstanding could also be disbursed to creditors. One user pointed to a purported email from the Trustee that claimed 17,000 out of 20,000 creditors had received payments. At the time of writing, crypto.news was unable to verify the claim.