Mt. Gox Repayment Theory Debunked: Latest BTC Transfers Not the Start

IconCryptoNewsTerminal Staff04 Jul, 2024

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Mt. Gox Repayment Theory Debunked: Latest BTC Transfers Not the Start

Mt. Gox, once the largest Bitcoin exchange, has been making headlines recently due to a series of large Bitcoin transfers from one of its addresses. Some have speculated that these transfers could be the start of repayments to creditors who lost funds when the exchange was hacked in 2014. However, Alex Thorn, Head of Research at Galaxy, a crypto trading and asset management firm, believes this is unlikely. Thorn points out that the recipient address of the transferred funds uses a P2PKH (pay-to-public-key-hash) format, while the addresses for the planned repayment distribution will use more modern formats like P2SH (pay-to-script-hash) or Bech32. Thorn also believes that the majority of Mt. Gox creditors are holders rather than sellers. He said, "I believe that there are more holders than sellers among Mt. Gox creditors, and although the German government is also dumping on the market, the market will absorb this overhang and eventually the negative news will be priced in."

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