Mt. Gox Moves $2.7 Billion Bitcoin As Selloff Fears Trigger Crypto Crash

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Updated: 05 July 2024

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The defunct crypto exchange Mt. Gox moved 47,228 Bitcoin worth about $2.7 billion from cold storage to a new wallet address as fears over a mass selloff helped trigger a crypto crash.

Fear, uncertainty, and doubt (FUD) on social media is at ”historic highs,” Santiment said, as Bitcoin plunged to a four-month low. The global cryptocurrency market capitalization plummeted 9% to dip under $2 trillion.

Mt. Gox Starts Distributing Bitcoin

The Mt. Gox rehabilitation trustee plans to distribute $9 billion of Bitcoin to creditors by October. On-chain data shows that the first batch of repayments is already underway after a transfer of 2,702 BTC, worth over $148 million, to the Bitbank exchange.

25 minutes ago, #Mt_Gox transferred 2,702 $BTC (~$148.44M) to #Bitbank.

#Bitbank is one of the exchanges listed for supporting Mt Gox repayments.

Address:https://t.co/3KqaREgFtq pic.twitter.com/lK3QcfI84f

— The Data Nerd (@OnchainDataNerd) July 5, 2024

Some Mt. Gox creditors on Reddit have also confirmed that their exchange accounts have received funds. The fears of a massive selloff have not only affected Bitcoin but also altcoins.

Ethereum slumped 9% to around $2,800, while BNB and Solana fell 11% and 6%, respectively. Dogecoin is among the worst-hit major tokens, with the price nosediving more than 14%.

The crypto crash saw over $600 million liquidated from the market in the past 24 hours, according to Coinglass. That’s the highest since the FTX collapse in November 2022.