Mt Gox Trustee: $400 Million Sale Didn’t Drop Bitcoin Price

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Mt Gox Trustee: $400 Million Sale Didn’t Drop Bitcoin Price

The trustee, who is currently overseeing the bankruptcy of the now defunct Mt. Gox cryptocurrency exchange, has refuted claims that it was the cause of the drop in the prices of Bitcoin since December last year. This was revealed recently by Nobuaki Kobayashi in a Q&A report with creditors. Kobayashi revealed the details of the recent of $400 million-worth of bitcoin plus bitcoin cash, which belonged to Mt. Gox bankruptcy estate.

In a statement, Kobayashi said he sold BTC and BCC, not by an ordinary sale, which is done through BTC/BCC exchange but in a way that would not affect prices in the market while at the same time ensuring that the transaction is secure. Kobayashi did not however disclose the exact details of how he sold off the funds.

Growing speculations

These comments came in the wake of increasing speculations with many linking the sale to the losses which have been witnessed in bitcoin and the entire cryptocurrency market.

In a document published on March 7, Kobayashi announced that a total of 34,008 BCH and 35,841 BTC were sold between December 2017 and February 2018. He added that an additional 18,000 BTC was moved from a wallet, which is owned by the estate on February 5. This is the day that saw the largest fall in the prices of bitcoin.

Although this could be a pure coincidence, the time frame of the ongoing sale also coincides with the drop in bitcoin prices. Bitcoin fell from the all-time-high of around $20,000 in December to a low of below $6,000 on Feb. 7.

In a Q&A session, Kobayashi advised analysts to refrain from drawing conclusion that the sale of BTC and BCC by the trustee caused the fall in the market prices of bitcoin.

Sale of the remaining holding

The trustee indicated that the process of selling the estate’s remaining holding of both currencies is yet to be determined. As at March 5, the trustee was still holding on to 166,344.35827254 BTC, which is valued at around $1.3 billion. This sale is a big milestone in the gradual process of bringing an end to a long standing bankruptcy case which was filed in 2014 after the collapse of Mt. Gox. The collapse was as a result of loss of around 700,000 BTC, which were stolen through hacking.

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