Mt. Gox Coins Moved From Wallets, Sparking Fears Of A Bitcoin Price Drop

Crime, Investing, News | April 26, 2018 By:

Trustees for the former Mt. Gox exchange have moved 16,000 bitcoins worth $141 million out of its wallets into different addresses, sparking fears of a potential massive sell-off that could depress prices.

CryptoGround, which monitors the Mt. Gox wallets, said the bitcoins were removed out of four different wallets in increments of 2,000, with no coins now remaining in those wallets.

The wallets are controlled by the exchange’s bankruptcy trustee, Nobuaki Kobayashi, a controversial Tokyo lawyer who previously sold about $400 million of the coins in September 2017. Kobayashi is supposed to be liquidating the tokens on behalf of Mt Gox creditors.

Mt. Gox crashed in 2014 when it held an estimated 80 percent of global bitcoin trading. Since then, the exchange and its founder, Mark Karpeles, have faced numerous lawsuits, and Karpeles is embroiled in embezzlement charges in Japan.

The fear with the current movement of coins is that selling them will flood the market and depress prices. There is some evidence that past sell-offs of Mt. Gox coins has dampened the market.