TLDR
- Mt. Gox transferred 11,833 Bitcoin (worth ~$930 million) on March 11
- This is the second major Bitcoin transfer by Mt. Gox in less than a week
- Bitcoin price dropped to a four-month low around $76,000 after the transfer
- Mt. Gox has until October 31, 2025, to complete creditor repayments
- The exchange still holds approximately $1.94 billion worth of Bitcoin
The defunct cryptocurrency exchange Mt. Gox moved nearly $1 billion in Bitcoin on March 11, causing ripples through the crypto market as prices fell to a four-month low. This marks the second major transfer by the bankrupt exchange in less than a week.
According to blockchain analytics firm Lookonchain, citing Arkham Intelligence data, Mt. Gox transferred 11,833 Bitcoin worth approximately $930 million. Of this amount, 11,501 Bitcoin (worth $905.1 million) went to a new wallet, while the remaining 332 Bitcoin ($26.1 million) were moved to a warm wallet.
The transfer cost Mt. Gox a mere $2.13 in transaction fees. This movement follows another transfer of 12,000 Bitcoin (worth over $1 billion) that took place on March 6.
Blockchain analytics firm Spot On Chain noted that the 332 Bitcoin moved to the warm wallet may be intended for creditor repayments. Arkham Intelligence previously revealed that $15 million from the March 6 transfer was sent to BitGo, one of the custodians helping with Mt. Gox’s repayment process.
The latest transfer coincided with a market downturn. Bitcoin’s price fell 2.4% to $76,784 within 30 minutes of the transaction, according to data from CoinGecko.
This drop brought Bitcoin back to price levels seen in November, when the market was rallying following the U.S. presidential election. The price later recovered to $79,275.
The crypto market as a whole felt the impact of these transfers. The total cryptocurrency market cap dropped to $2.44 trillion on Tuesday, its lowest point since early November.
$937 million in liquidations within 24 hours
The market reaction to Mt. Gox’s movements resulted in over $937 million in liquidations within 24 hours. This surge in liquidations highlights the market’s sensitivity to large Bitcoin movements.
After the recent transfers, Mt. Gox’s main wallets now hold 24,411 Bitcoin, worth approximately $1.94 billion. This represents a major reduction in holdings since June 2024, when the exchange began offloading around $9.2 billion worth of Bitcoin to prepare for creditor repayments.
Mt. Gox was once the largest Bitcoin exchange in the world. Between 2010 and 2014, it handled 70-80% of all Bitcoin trades before its collapse.
The Tokyo-based platform shut down after a hack resulted in the theft of up to 850,000 Bitcoin. Since then, creditors have been waiting for the return of their funds.
Last October, Mt. Gox extended its deadline for repaying creditors to October 31, 2025. The exchange is working through a court-supervised rehabilitation process to return funds to users who lost their assets in the 2014 collapse.
Investors worry that creditors might sell immediately
The gradual movement of funds has raised concerns about potential market pressure. Many investors worry that creditors who receive their Bitcoin might choose to sell immediately, potentially pushing prices lower.
Some repayments have already been processed through exchanges like Kraken and Bitstamp. However, the full distribution remains a lengthy process that will likely continue over the coming months.
Market analysts are closely watching Mt. Gox’s wallet activity. The impact on Bitcoin’s price will largely depend on whether creditors choose to hold or sell their recovered assets once repayments are complete.
Arthur Hayes, chief investment officer at Maelstrom, addressed the market conditions in a March 11 post on X (formerly Twitter). He advised investors to “be patient” and predicted that Bitcoin would bottom around the $70,000 mark before recovering.
The ongoing repayment process marks the final chapter in one of cryptocurrency’s most infamous exchange failures. For early Bitcoin adopters who lost funds in the Mt. Gox collapse, the repayments represent the end of a decade-long wait to recover their assets.
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