Mt. Gox Dismisses Claims Of Bitcoin Selloff

Mt. Gox, once the world's largest Bitcoin exchange before its bankruptcy in 2014, is repaying customers and creditors. Nobuaki Kobayashi is in charge of the rehabilitation process.

Reports that Mt. Gox was transferring up to $10 billion worth of Bitcoin and Bitcoin Cash as part of the Rehabilitation Plan began circulating today, but those in charge of the plan have denied the reports adamantly.

The bankrupt exchange addressed the growing concerns in a letter dated today, May 28, 2024. In it, the Rehabilitation Trust said that "Under the Rehabilitation Plan, the Rehabilitation Trustee is preparing to make repayment for the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated."

The letter released today also explains that the repayment plan offers two options: repayment through a Designated Cryptocurrency Exchange, receiving bitcoin and bitcoin cash on behalf of the rehabilitation creditors, or repayment with proceeds from the sale of bitcoin and bitcoin cash.

Moreover, the rehabilitation trustee acknowledged the heightened anxiety surrounding the management of these assets. The document added, "Recently, the Rehabilitation Trustee has received inquiries/deep concerns about the status of managing bitcoin and bitcoin cash."

To further dispel rumors, the exchange affirmed, **"At this time, the Rehabilitation Trustee has neither made repayment in (i) above by way of Designated Cryptocurrency Exchange, etc. nor sold bitcoin and bitcoin cash to make repayment in (ii) above.

The Rehabilitation Trustee is currently securely managing Bitcoin and Bitcoin cash."**

Reports Of BTC & BCH Sale Worth Over $10 Billion

Mt. Gox's denials came in response to reports by Arkham Intelligence and Wu Blockchain that revealed substantial movements of Bitcoin and Bitcoin Cash.

Arkham Intelligence said 72 different Mt. Gox-linked wallets transferred 141,686 BTC over the past seven hours. The transactions were made in batches of approximately 2,000 BTC each to a newly created wallet identified as 1Jbez.

Moreover, this wallet, which received its first small transaction on May 20, 2024, currently holds nearly half of the attributed Mt. Gox BTC, valued at around $9.36 billion.

Furthermore, Arkham Intelligence noted that 1Jbez has already started dispersing BTC, sending 4,000 BTC ($271.8 million) to another new wallet (152w), alongside smaller transfers to wallets 1LsC and 18YB.

In addition, these transactions sparked fears of a potential market selloff, exacerbating concerns within the crypto community.

Adding to the intrigue, Wu Blockchain reported that Mt. Gox-related addresses also moved 142,846.22 BCH to an unmarked address. The concerned address now holds approximately $67.9 million in Bitcoin Cash, making it the 11th largest BCH whale address.

Mitigating Panic and Speculation

Despite these reports, the Mt. Gox Rehabilitation Trustee's assurances aim to mitigate panic and speculation. The letter emphasized that repayment preparation is ongoing and urged stakeholders to remain patient.

It stated, "As the Rehabilitation Trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made."

The crypto community remains on edge as the situation unfolds. The massive transfer of funds has naturally led to a flurry of speculation and anxiety.

Market watchers are monitoring further developments closely, knowing that any significant selloff could impact Bitcoin and Bitcoin Cash prices. Mt. Gox's next steps will determine market stability in the coming weeks.