Kraken has confirmed receipt of Bitcoin (BTC) and Bitcoin Cash (BCH) from the Mt. Gox Trustee and pledges to distribute funds within 7-14 days, according to a recent email.
“We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee. While we will work to distribute funds as quickly as possible, please anticipate 7-14 days for funds to be credited to your account,” the email reads.
Mt. Gox has made huge Bitcoin transfers for its repayment plan
Earlier in the day, Mt. Gox executed a series of substantial Bitcoin transfers. According to blockchain analytical platform Arkham Intelligence, the defunct exchange moved approximately 91,755 BTC, valued at about $5.8 billion, to four unidentified addresses.
Notably, 48,641 BTC, valued at $3.07 billion, was transferred to the address 3JQie, after an initial transfer to Mt. Gox’s 1Jbez address.
Additionally, 42,587 BTC, worth $2.7 billion, was moved to the address 18vjnB.
Smaller transfers included 527 BTC, valued at $33.63 million, to the address 1HRAp, and a minor transfer of 0.02 BTC, worth $1,300, to the address 1JJ8oBa.
These transactions are believed to be preparations for the repayment plan, which was first announced on July 5 after about 47,229 bitcoin was moved triggering market volatility.
The repayment plan indicated that repayments would be facilitated through designated crypto exchanges, with timelines varying across platforms.
Today’s massive movements of Bitcoin from Mt. Gox have had a notable impact on the market with Bitcoin price dropping from around $65,000 to $63,900 at press time, resulting in approximately $13 million in liquidations, as reported by Coinglass.
The BTC price pullback, which comes after Bitcoin portraying significant bullish movements over the past few days can be attributed to increased selling pressure due to the anticipation of large-scale disbursements.
However, despite the immediate market volatility, analysts remain optimistic about Bitcoin’s resilience. They draw parallels to the market’s recent handling of the German government’s Bitcoin sales, which involved approximately 50,000 BTC and concluded without major disruptions.
Market reaction
The Kraken team’s prompt action in processing the received funds signifies a crucial step towards resolving the long-standing Mt. Gox bankruptcy saga.
The market is closely watching the developments, as the distribution of these funds is expected to bring some stability and trust back into the ecosystem.
As Toby Cunningham, co-host of the popular crypto show Crypto Tips, advised, “First, it was Germany selling Bitcoin and now it’s Mt. Gox. Dollar cost average and HODL because there will always be someone or something selling.”
With the confirmation of funds received and a clear timeline for disbursement, Kraken is on course to provide much-needed relief to Mt. Gox creditors, who have been awaiting repayment for years.
The successful execution of this plan could serve as a milestone for the broader cryptocurrency community, reinforcing the importance of transparency and trust in the market.
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