Mt Gox Trustee Reveals Selling $400 Million in Bitcoin

Nobuaki Kobayashi, a Tokyo attorney and bankruptcy trustee for Mt Gox exchange revealed that in the past few months he sold bitcoin and bitcoin cash worth around $400 million. Moreover, the bitcoin whale stated that he has left around $1.9 billion tokens, which could be sold as well in his attempt to raise cash for distribution to Mt Gox’s creditors.

Experienced bitcoin users and traders recognise Mt Gox as once a leading bitcoin exchange. However, the company filed for bankruptcy protection in 2014 after losing 850,000 bitcoins. At the time, the worth of the lost coins was around $500 million. Hackers were named as the reason for the loss and only 200,000 bitcoins were retrieved by the exchange.

With popularity of bitcoin continuously growing, its symbol is now more than ever featured at online shops and even at any popular live online casino. Thus, the cryptocurrency has become a real target of hackers, who can use it anonymously once stolen.

Details regarding the massive sale were revealed on 7th of March by Kobayashi himself. He stated that he managed to generate an amount of JPY 42,988,044,343 i.e. around $405 million. According to a report by his creditor, Kobayashi sold 35,841.00701 bitcoins and 34,008.00701 in bitcoin cash. The trustee even went on explaining his actions by saying that after “consultation with the court” he thought it “necessary and reasonable” to sell some of his bitcoins and bitcoin cash in order to secure money for distribution resources. He also added that he “made efforts” to sell the bitcoin and bitcoin cash for a price as high as possible.

It is easy to notice that the amount provided by Kobayashi matches the amount Mt Gox has to distribute. At the time of the affair in 2014, the company’s CEO Mark Kerpeles was charged with data manipulation as well as embezzlement, charges to which he pled not guilty in 2017. This scandal was responsible for triggering regulatory changes across the globe, Japan included.

Now that this information is known, experts are claiming that wallets associated with Kobayashi witnessed significant cashouts in the period between December and February. Those dates also noted steep price declines on all digital currency markets, with prices falling for about 50% from their highs in 2018.

These liquidations, however, don’t seem to be the last ones. Namely, Kobayashi has reported that additional similar steps could be coming after the bankruptcy court approves them. He stated that he shall consult with the court in order to determine additional sales of both bitcoins and bitcoin cash. Currently, the bitcoin whale is said to own 166,344.35827254 bitcoins i.e. around $1.7 billion. Moreover, he holds another $197 million in bitcoin cash.

Disclosures in his statement reveal that the average price he got for his bitcoins was $10,105. On Wednesday, the cryptocurrency was maintaining a price around $10,500 during the day, before noting a drastic drop to $9,923 i.e. a negative change of -7.34%.