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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Dutch Billionaire Calls Agreement With Facebook 'Impossible' in Bitcoin Ad Lawsuit

  • Dutch billionaire John de Mol has asked for a ruling in his lawsuit against Facebook after negotiations have failed.
  • De Mol's lawsuit centers around fake bitcoin ads using his name and likeness. 

Dutch billionaire and ‘Big Brother’ creator John de Mol has issued an update on his lawsuit against Facebook concerning the publication of fake bitcoin advertisements using his likeness for promotion. De Mol says negotiations with the social media company have deteriorated, and is pushing for Dutch courts to deliver a ruling on the case.

Fake Bitcoin Advertisements

De Mol claims that he has been frustrated by a series of bitcoin-related ads that have falsely used his name and likeness for promotion on the social media platform. Despite efforts to negotiate with Facebook, de Mol says that it has been “impossible” to come to an agreement over the false advertisements. 

The billionaire businessman first filed the lawsuit in June and is now asking the Amsterdam District Court to make a ruling in the case.  De Mol released a statement explaining his situation, 

After three months of negotiating it has become clear to me that it is impossible to come to an agreement with Facebook on the misleading bitcoin advertisements.

He continued, 

While the company seemed to be cooperating, it was merely a smokescreen that concealed its reluctance to put in place the desired measures in a timely and correct manner.

Facebook has yet to comment on the issue, but de Mol is not the first person to complain about fake bitcoin ads on the platform. In August, New Zealand TV host Duncan Garner insisted that he was not behind a series of Facebook ads using his likeness to promote bitcoin and expensive cars. 

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