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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Binance CEO CZ Reacts to the Fed's 'Quantitative Easing Infinity'

Siamak Masnavi

At 12:00 UTC on Monday (March 23), the Federal Reserve issued a press release to announce what several influencers in the crypto space are referring to as "Quantitiative Easing Infinity":

These were two the key parts of the press release:

The Federal Open Market Committee (FOMC) will purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.

Establishment of two facilities to support credit to large employers – the Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance and the Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding corporate bonds.

This was the reaction by Anthony Pompliano (aka "Pomp"), Co-founder and Partner at Morgan Creek Digital:

Although futures for the S&P 500 surged 55.75 points (or 2.44%) in premarket trading (since the Fed made its announcement before the opening of today's trading session), currently (as of 14:37 UTC), the S&P 500 is down 38.59 (or 1.67%) at 2,266.33.

As for Bitcoin, according to data from CryptoCompare, although it was trading below $6K before the Fed's announcement, within 65 minutes of the Fed's announcement, it had reached the intraday high of $6,513, and currently (14:39 UTC) it trades at $6,268, up 3.57% in th past 24-hour period:

BTC-USD 24 Hour Chart at 1437 on 23 Mar 2020.png

Binance Co-Founder and CEO Changpeng Zhao (aka "CZ") had this to say about the Fed's plans for unlimited quantitative easing:

Su Zhu, Co-Founder, CIO, and CEO of Singapore-based crypto-focused hedge fund Three Arrows Capital, believes that the Fed's actions will eventually lead to such inflation that the cost of a new iPhone will reach $20,000 later in this decade: