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.

Featured Image Credit: Photo via Pexels.com

Bitcoin Whales Accumulated Over $106 Million in BTC After Price Drop, Data Shows

Francisco Memoria

Bitcoin whales have accumulated over 12,000 BTC, or over $106 million worth of the cryptocurrency, since its price dropped below $9,500 on May 20, according to data from crypto analytics platform Santiment.

According to Santiment addresses with over 100 bitcoin in them – considered BTC whales because of their significant holdings – have been buying the dip over the last few days. Throughout the year, they’ve shown a “propensity to accumulate into dips and offload their bags slightly before short-term tops occur.”

Cryptocurrency market participants observe the movements of whales because their significant holdings could easily influence the market’s directions. If most bitcoin whales start accumulating a short-term rise is to be expected. On the other hand, if whales move their funds to exchanges a price drop is to be expected.

Back in March, Santiment found that the top 100 holders of Ethereum, the second-largest cryptocurrency by market capitalization, were accumulating amid an ongoing consolidation, which according to the firm showed those who have a larger stake in ETH were starting to have a “collective sentiment of the token being undervalued.”

Bitcoin whales were also accumulating funds ahead of the cryptocurrency’s halving event, which according to some signalled a sell-off was expected after the event. CryptoCompare data shows the price of bitcoin did not drop immediately after the halving. It traded over the $9,000 for days after the event, but has since dropped below that mark.

Featured image via Pixabay.