Mt. Gox Trustee Confirms Liquidation of $230 Million Worth of Bitcoin and Bitcoin Cash

Siamak Masnavi

On Tuesday (25 September 2018), Nobuaki Kobayashi, the trustee of now-defunct crypto exchange Mt. Gox, confirmed via a statement that he had liquidated around $230 million worth of Bitcoin (BTC) and Bitcoin Cash (BCH) in the most recent round of sales.

As you probably already know, Mt. Gox was a Bitcoin exchange in Tokyo, Japan founded in 2010. By the beginning of 2014, it was handling around 70% of all Bitcoin transactions worldwide. Then, in February 2014, Mt Gox. suddenly stopped trading, and declared bankruptcy.

According to Reuters, on 28 February 2018, the exchange filed for bankruptcy protection, claiming that it had been hacked, and that it had "lost 750,000 of its users’ bitcoins and 100,000 of its own." At that time, one BTC was worth around $565, which means that the exchange had suffered a loss of around $480 million.

At a press conference held at Tokyo District court on 28 February 2018, the company's CEO, Mark Karpeles said:

"We had weaknesses in our system, and our bitcoins vanished. We've caused trouble and inconvenience to many people, and I feel deeply sorry for what has happened."

Yesterday, Japanese lawyer Nobuaki Kobayashi, who is called "Tokyo Whale" by some members of the crypto community because of the multiple rounds of sales of crypto he has overseen since last Autumn as part of the liquidation of Mt. Gox's assets, said in a statement that in order to secure the interests of the company's creditors that he had sold a "a certain amount of" BTC and BCH "during the period from the 10th creditors' meeting in the Bankruptcy Proceedings (ie, from March 7, 2018) to the commencement of Civil Rehabilitation Proceedings," and "secured a certain amount of money for the bankruptcy estate."

In total, 24,658.00762 BTC and 25, 331.00761 BCH were sold during this period, and the total proceeds from the sale was JPY 25,975,702,352 or approximately $230 million. This means the Mt. Gox trustee managed to sell each bitcoin at an average price of roughly $8,100.

According to data from CryptoCompare, at press time, Bitcoin is trading at $6,446, down 0.3% in the past 24-hour period.

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Bitcoin Segwit Adoption Hits New All-Time High Above 62%

Francisco Memoria

The percentage of transactions using Segregated Witness (SegWit) has hit a new all-time high above the 65% mark at the beginning of this year, as adoption for the scaling solutions keeps growing.

According to data from a website created to track the usage of SegWit on the Bitcoin network, transactions using it have jumped from around 36% in September 2019, to little over 65% on January 4.

f2a487bb4a8c3400d1c0e72b2750645e.pngSource: SegWit.Space

SegWit usage is said to be growing partly thanks to cryptocurrency exchanges adding support for it. In October, for example, Bitfinex added native SegWit addresses for BTC withdrawals, shortly before BitMEX did the same.

The scaling solution’s adoption may keep on growing in the near future as Binance’s CEO, Changpeng Zhao, has said on Twitter the cryptocurrency trading platform plans to add SegWit adoption by the end of the first quarter of this year. The rise is significant as SegWit adoption was struggling to move over the 50% mark since April 2018.

SegWit is a protocol upgrade to the blockchain which helps reduce transaction sizes and transactions costs by removing the “witness” or signature data from transactions. Litecoin, often seen as the silver to bitcoin’s gold, adopted the scaling solution first and saw its SegWit usage hit 75% in September 2019.

Featured image via Pixabay.