- Kraken has successfully distributed Bitcoin and Bitcoin Cash to Mt. Gox creditors.
- Analyst Mignolet highlights Kraken’s advocacy for the use of OTC trading.
- The creditors may hold their BTC or conduct large volumes of OTC transactions.
After a decade-long hiatus, creditors of the defunct crypto exchange Mt. Gox have begun receiving their locked Bitcoins via Kraken crypto exchange.
According to analyst Mignolet, Kraken has advised Mt. Gox creditors to utilize Over-The-Counter (OTC) trading.
Kraken CEO Dave Ripley confirmed on X (formerly Twitter) the successful distribution of Bitcoin and Bitcoin Cash to Mt. Gox creditors. Ripley expressed his gratitude to the trustee for keeping the funds safe and holding onto the Bitcoins.
Blockchain analytics platform Arkham Intelligence reported the massive BTC from Mt. Gox-linked wallets. Reportedly, Mt. Gox transferred 42,587 BTC, worth about $2.85 billion, to an internal wallet on Tuesday.
In addition, Arkham identified a transfer of $2.85B in BTC to new wallets in a bid to distribute 5110 BTC, worth $340.1 million, to 4 separate Bitstamp addresses. As per Arkham’s analysis, Mt. Gox holds a total of approximately $5.70 billion in Bitcoin.
Commenting on Kraken’s preference for OTC, Mignolet outlined two possible outcomes of the repayment, assuming the BTC price remains stable. He stated that clients may either hold their Bitcoins or conduct large volumes of transactions through OTC trading.
Notably, Kraken’s advocacy for using OTC aligns with Mignolet’s previous X post dated July 16. Revealing Mt. Gox’s plan to repay creditors via Kraken, the analyst highlighted Kraken’s OTC trading.
Over the last few days, reports have focused on Mt. Gox’s Bitcoin transactions, stirring the crypto market. Mt. Gox’s staggering transfers, coupled with a few other driving forces, including the German and U.S. governments’ BTC purchases and the prospect of an Ether ETF launch, have caused Bitcoin to enter the red zone, with its price falling below $66,000.
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