A crypto wallet holding $2 billion in Bitcoin from the Mt. Gox BTC distribution has reportedly sent a test transaction. Users on Reddit are making unverified claims about receiving BTC and BCH balances on BitGo, with Arkham Intelligence analysts suggesting that BitGo is behind the wallet.
Arkham analysts believe that this transaction is in preparation for distributing funds to Mt. Gox creditors. It is yet unclear if the now-defunct exchange is actually preparing to repay its clients or if it is reshuffling its Bitcoin holdings. Clients who lost their holdings have waited for nearly ten years for a reimbursement.
Mt. Gox was a prominent Bitcoin exchange founded in 2010 and based in Japan. The exchange collapsed in 2014 following a hack. It processed more than 70% of all Bitcoin transactions at its peak. Mt. Gox lost 850,000 BTC in its security breach, making it one of the biggest hacks ever, and causing the exchange to close its doors.
Also Read: Bitcoin: Mt. Gox Moves $2.8 Billion Worth of BTC to Internal Wallet
Arkham Says Mt. Gox Bitcoin Transaction Was Likely BitGo
Arkham explained the process of tagging the wallet as likely from BitGo. “The address was clustered with a large input cluster which we were able to identify as BitGo due to custody structure and wallet types used,” an Arkham analyst said. “We’ve also been able to identify the other fur exchange partners used for Mt. Gox distributions, so there’s also a process of elimination.” BitGo is one of several crypto exchanges working to help with the Bitcoin distribution, including Kraken.
Meanwhile, Reddit users in a channel dedicated to Mt. Gox Bitcoin creditors are alleging that they have received installments of BTC and BCH, possibly from the wallet. These claims remain unverified.
Bitcoin has exploded in price since 2014, rising to an all-time high of $73,000 this past March. Since the arrival of Spot Bitcoin ETFs, the leading cryptocurrency has performed greatly in 2024. The question remains what creditors will do with their bitcoin once Mt. Gox finally distributes them all.