Mt.Gox, formerly the world's largest Bitcoin trading platform, has thrown the market into turmoil after initiating a massive Bitcoin withdrawal.
Today, July 23, the trading platform transferred $3.2 billion worth of Bitcoin in just two hours, as part of the expected payment to the platform’s creditors after its collapse in 2014 due to a series of hacks.
Payment process:
Rehabilitation trustee Mt.Gox began processing payments in Bitcoin and Bitcoin Cash in July 2024.
The trustee's plan includes distributing 141,686 bitcoins, worth about $9.6 billion, to approximately 127,000 creditors.
The price of Bitcoin saw a slight decline, indicating that traders are anticipating potential selling pressure from creditors.
However, analysts believe that a significant portion of the expected selling activity has already been absorbed in current market conditions.
Tony Sycamore, an analyst at IG Markets, noted that the market has already factored Mt.Gox's payout into its forecasts.
As a reminder, at its peak, Mt.Gox was handling more than 70% of all Bitcoin transactions in the world.
However, its collapse began with a series of unremarkable breakouts between 2011 and 2014.
In February 2014, the company collapsed completely, rocking the cryptocurrency world and leading to a protracted legal and financial struggle to compensate users.
