Key Points
- Mt. Gox cryptocurrency exchange is progressing with its Bitcoin repayment plans, recently moving 0.021 BTC to a new wallet.
- Several creditors of Mt. Gox have reported unauthorized login attempts to their accounts amid the ongoing repayment process.
The bankrupt cryptocurrency exchange, Mt. Gox, is actively progressing with its Bitcoin repayment plans. The exchange has been transferring cryptocurrencies to different platforms since it declared its intention to initiate the repayment process. Arkham Intelligence found that the exchange moved 0.021 BTC to a fresh wallet in the early hours of Monday. This transaction is believed to be a test transfer that usually comes before the actual offload.
Currently, Bitcoin is trading at $67,295.73, showing a 0.82% rise in the past 24 hours. Based on this valuation, the transferred asset is estimated to be around $1,400.
Possible Bitcoin Recipients After Kraken
Arkham Intelligence identified one of the recipient addresses as being connected to the crypto exchange Bitstamp. In late June, Mt. Gox announced that it would start the repayment process from July. This led its Rehabilitation Trustee, Nobuaki Kobayashi, to state that the repayment would be carried out in partnership with specific cryptocurrency exchanges.
He mentioned that he must have finalized the exchange and verification of required information to implement the repayment for these crypto exchanges. Bitstamp, Kraken, and a few other centralized exchanges are included in this category. These exchanges are expected to have received Bitcoin and Bitcoin Cash (BCH) to repay Mt. Gox creditors.
Bitstamp had previously assured beneficiaries that it would promptly distribute its share of the asset to them as soon as it receives it. About a week ago, Kraken confirmed that it has received some assets from the bankrupt exchange through an email sent to Mt. Gox creditors. Similarly, Bitbank and SBI VC Trade, two cryptocurrency exchanges in Japan, have received their allocated Bitcoin from Mt. Gox for distribution purposes.
Once such a transfer is confirmed, the crypto exchange is expected to initiate the distribution and complete it within 7-14 days. The two Japanese exchanges are said to have distributed the assets upon receipt. More distributions are anticipated to take place before the end of July, considering the timeframe for the allocated Bitcoin.
Unauthorized Login Attempts Reported by Mt. Gox Creditors
Amid the ongoing Bitcoin repayment process, some creditors have reported scammers trying to access their Mt. Gox accounts. A Reddit user named ovkovk highlighted the issue in a post under the insolvency sub-editor forum, stating, “Just received 15 notifications for account login … Is Mt. Gox under attack?”
The hacker is allegedly using brute-force techniques, testing a series of keys and code to compromise user accounts. The hacker is evidently trying to access these accounts and withdraw the creditors’ Bitcoin when it is eventually paid by the preselected cryptocurrency exchanges. Two-factor Authentication (2FA) was suggested to be potentially safe to keep the hacker at bay.
However, Mt. Gox appears to have the situation under control. Meanwhile, the wider crypto industry is keeping an eye on what Mt. Gox creditors will do with their holdings. It is likely that the Bitcoin Cash will be converted to Bitcoin, as many consider it less valuable.
