After a decade since the infamous Mt. Gox hack, it seems that the victims of that bankruptcy may finally have a glimmer of hope. Today, cold wallet addresses linked to Mt. Gox conducted test transactions with small amounts of Bitcoin, known as “dust,” signaling progress in the long-awaited refund process.
Prior to the hack, Mt. Gox, based in Tokyo, held the position of the top bitcoin cryptocurrency exchange, handling up to 70% of all global Bitcoin transactions at its peak. However, in February 2014, the platform halted withdrawals and later revealed an embezzlement of approximately 650,000 to 850,000 BTC, valued at around $49 billion in today’s market but only around $500 million at the time.
Subsequently, about 200,000 BTC were recovered from old wallets associated with the company. Since then, victims have been patiently waiting for reimbursements or have been negotiating their claims, while facing frustrating delays in legal proceedings. In a recent update in September 2023, the deadline for refunds was extended by another year.
One of the receiving addresses, identified as belonging to Bitbank, one of the select exchanges chosen to distribute the funds, has caught the attention of The Block’s Tim Copeland. This development indicates progress towards the repayment process.
According to the official timeline, Nobuaki Kobayashi, the rehabilitation administrator, announced that refunds will commence “from the beginning of July 2024.”
However, the timing of these payments has raised concerns within the crypto community, primarily due to the recent downward trend in BTC prices, which currently stands at $57,369.64, marking a 17% decline over the past month. This decline has negatively impacted the entire cryptocurrency market. In the last 24 hours alone, Coinglass reported liquidations exceeding $250 million in long positions.
In addition to the impending refunds from Mt. Gox, other significant amounts of BTC are being transferred, including by the governments of Germany and the United States, who have recently moved substantial sums of confiscated funds.
The combination of the prevailing bearish sentiment in the market and the questionable timing has led some to speculate that authorities may be anticipating a future price crash related to the Mt. Gox events.
Even cryptocurrency wallets that have remained dormant for years are being reactivated. Coindesk reported on the reawakening of a “whale” wallet that, after six years of inactivity, transferred 1,000 BTC to Coinbase, experiencing a significant increase in value since its acquisition.
Disclaimer: The opinions expressed in this article, whether by the author or any individuals mentioned, are solely for informational purposes and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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