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Defunct cryptocurrency exchange Mt. Gox has transferred 13,265 Bitcoin worth $784 million, marking the first major on-chain activity since late July.

An address associated with Mt. Gox moved 12,000 BTC (valued at $709 million) to an empty wallet starting with “1PuQB,” according to blockchain analytics firm Arkham Intelligence. The remaining 1,265 BTC, worth roughly $75 million, was sent to an address labeled as an Mt. Gox cold wallet.

The significant move has led to speculation about possible Bitcoin distribution to creditors who have been waiting for repayment since the exchange collapsed in 2014. However, Alex Thorn, head of research at Galaxy Digital, suggests the impact on markets could be limited.

“We now believe that of the 13,265 BTC moved in this transaction, only 1,265 ($74.5 million) is intended for distribution, while 12,000 goes to fresh cold storage, so very little,” Thorn said.

Bitcoin price has remained relatively stable following the transactions, remaining above $59,000 according to CoinGecko data. This muted market reaction contrasts with previous instances of Mt. Gox-related selling pressure impacting BTC price after the company announced the start of distributions in June.

Mt. Gox’s last major Bitcoin movement occurred on July 30, when it transferred 47,229 BTC to three unknown wallets over a three-hour period. At the time, Arkham Intelligence suspected that 33,105 Bitcoin was sent to an address owned by crypto custodian BitGo, which works with the Mt. Gox Trustee to return funds to creditors.

The exchange still holds a substantial 46,164 BTC worth around $2.7 billion. Interestingly, Mt. Gox creditors appear to be holding on to their repurchased Bitcoin rather than immediately selling it.

The trustee of Mt. Gox’s rehabilitation announced in July 2024 that Bitcoin and Bitcoin Cash distributions would begin to approximately 127,000 creditors owed more than $9.4 billion. The exchange’s 2014 collapse was blamed on multiple undiscovered hacks that resulted in the loss of more than 850,000 BTC, now valued at more than $51.9 billion.

While recent moves signal progress in the long-awaited redemption process, the Mt. Gox saga remains relevant in crypto history despite the last few years wrapping up with redemptions. The exchange’s ability to move substantial amounts of Bitcoin without dramatically impacting the market and barely moving at all shows the growing maturity and liquidity of the crypto ecosystem.

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