Mt. Gox Trustee Sold $400M in Bitcoin and Bitcoin Cash Via Exchanges

Announcements, Investing, News | March 8, 2018 By:

A trustee of the bankrupt Mt. Gox exchange has been quietly selling as much as $400 million of the defunct exchange’s cold-stored bitcoin and Bitcoin Cash.

The details of the sale were only revealed by trustee Nobuaki Kobayashi on Thursday. By selling across exchanges rather than at auction, the Japanese attorney may have left himself open to price manipulation and other accusations, as well as private lawsuits. Selling through exchanges may also have depressed overall market prices. Bitcoin has been severely down since the end of last year.

The sales generated JPY 42,988,044,343. The creditor report claims the trustee liquidated 35,841.00701 bitcoin and 34,008.00701 in Bitcoin Cash.

“As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above,” said Kobayashi. “I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of sale.”

Mt. Gox suffered what was the biggest hack in history in 2014, with millions in bitcoin taken. About 200,000 bitcoin has been recovered. CEO Mark Karpeles was charged with embezzlement and data manipulation in connection with the collapse, charges to which he pleaded not guilty last year.
Kobayashi’s report claims that more sales may follow pending bankruptcy court approval.