Mt. Gox holds $3b in Bitcoin after BitGo transfer

The Mt. Gox Trustee sent $2.25 billion in Bitcoin to two BitGo addresses as part of a $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 crypto exchange Mt. Gox also settled transfers to BitGo on July 31.

It was previously unclear where the platform moved funds to as crypto.news reported. However, the Trustee’s emails to users cited on a subreddit dubbed “mtgoxinsolvency” and Akrham intelligence confirmed BitGo was the recipient. 

Users said BitGo balances had not reflected the payments at press time. BTC initially fell below $66,000 after news of transfers to BitGo, but the cryptocurrency quickly recovered from losses and traded back above $66,500.

BitGo was the fifth and final custodian designated to handle creditor repayments after a 10-year wait period. Following a series of hacks between 2011 and 2014, more than 20,000 users waited over a decade for reimbursement. 

Mt. Gox held some 46,160 BTC worth over $3 billion after the Trustee transferred Bitcoin and other cryptocurrencies like Bitcoin Cash (BCH) to Kraken, Bitstamp, BitGo, and two other crypto exchanges. 

Since data signaled that the defunct trading venue has settled just over $5.5 billion in BTC repayments, it’s possible that the outstanding $3 billion in Bitcoin may also be disbursed to creditors. One user pointed to a supposed Trustee email claiming that 17,000 out of 20,000 creditors have received payments. As of writing, crypto.news was unable to verify the claim.