In an unforeseen development on July 23, the beleaguered Mt. Gox exchange commenced the transfer of an astounding 47,500 Bitcoin, valued at approximately $3.2 billion, to two undisclosed addresses at 5:05 am and 6:27 am UTC. This seismic shift has raised numerous eyebrows within the cryptocurrency community.

Shifting Sands of Bitcoin Holdings

Arkham Intelligence reports reveal that Mt. Gox, once a titan in the Bitcoin realm, now holds 90,344 Bitcoin (BTC) with an outdated valuation of $6.02 billion. Current assessments place their holdings at a more modest 42,744 BTC, translating to roughly $2.85 billion.

Read more: Bitcoin Sinks Below $63K Amidst Mt. Gox’s $2.8 Billion BTC Transfer

Repayment Mechanism Unveiled

Following a declaration on July 5, Mt. Gox outlined an ambitious plan to expedite repayments to creditors, which appears to be progressing smoothly. The defunct exchange’s wallet, labeled “Mt. Gox: Cold Wallet (1Jbez),” initiated significant outflows, transferring 5,110 BTC (approximately $340 million) to an undisclosed wallet and the cryptocurrency exchange Bitstamp.

Of these transfers, 2,871 BTC, valued at around $191 million, found its way to an unknown address starting with 1JKMS, while the remaining $149 million worth of Bitcoin was deposited into Bitstamp.

Noteworthy Fund Movements

Earlier, an even larger tranche of 42,587 BTC, worth approximately $2.85 billion, was moved to another anonymous address commencing with 15yPU. This substantial movement signals a strategic preparation for forthcoming creditor repayments through Bitstamp, as observed on July 22 through on-chain fund movements.

Arkham Intelligence’s data highlights that Mt. Gox addresses deposited nominal amounts to four distinct Bitstamp deposit addresses. Bitstamp, in collaboration with four other exchanges, is poised to facilitate the Mt. Gox Trustee in the repayment process.

Divergent Speculations

Despite finance analyst Jacob King’s assertion on X (formerly Twitter) on July 4, predicting that 99% of creditors would liquidate their Bitcoin immediately upon receipt, a Reddit poll suggests a contrasting sentiment among creditors.

Massive Bitcoin Offload

The recent outflow of $3.2 billion in Bitcoin adds to an aggregate of over $12 billion offloaded to creditors since July 16. This massive exodus included a significant transfer of 140,000 BTC on July 16, following a fortnight of inactivity.

In just three hours, nearly 190,000 BTC was moved, contributing to an immense $12 billion in volume movements as Mt. Gox honored its repayment commitments.