Mt. Gox Trustee May Have Crashed Bitcoin in 2018 by Dumping It on an Exchange, but There is Still Hope
The now-defunct cryptocurrency exchange Mt. Gox reportedly liquidated around $312 million worth of Bitcoin (BTC) throughout February and June of 2018 through a Japanese exchange called BitPoint.
GoxDox, an organization that was established to assist Mt. Gox creditors, released a photograph of a bank account statement on February 5 showing the alleged transactions sent from BitPoint to the Mt. Gox trustee led by Nobuaki Kobayashi.
Alleged Transactions Sent From BitPoint to Mt. Gox Trustee Led by Nobuaki Kobayashi
If the report of GoxDox is accurate, the trustee went out of his way to disregard the suggestion of Kraken CEO Jesse Powell, who explicitly told the trustee to refrain from selling the companys BTC holdings. If needed, Powell previously said that the trustee has to liquidate the remaining Bitcoin funds on an over-the-counter (OTC) trading platform to minimize its impact on the price of Bitcoin.
It is possible that the trustee and the rest of the individuals dealing with the Mt. Gox case were rattled by the circumstances, prematurely liquidating a significant portion of the organizations assets to move forward with the bankruptcy.
Was the dump of Mt. Gox the primary cause of Bitcoins crash in 2018?
According to GoxDox, the Mt. Gox trustee began to sell the exchanges Bitcoin holdings starting in early 2018, possibly even before February. From early February to June, the trustee is said to have sold tens of millions of dollars worth of Bitcoin on a weekly basis.
The researchers said that the frequent wire transfers supposedly initiated from the bank account of BitPoint to that of the Mt. Gox trustee show the trustees intent to hide the transactions in an event of a security breach on the side of BitPoint.
The trustee likely expected a public backlash if it were revealed that the trustee had been selling large amounts of Bitcoin in the public cryptocurrency exchange market, putting the price of BTC at a significant risk of dropping.
It seems fair to conclude that the reason for sending frequent wires was to prevent counterparty risk. A hack at BitPoint could expose the MtGox Estate to a loss and the trustee didn't want to get Goxxed. It follows that the trustee would have instructed BitPoint to wire JPY [Japanese yen] over as soon as he had it. This way, MtGox Estate assets wouldn't be exposed to any hacking incident at BitPoint.
On May 2, based on the data provided by GoxDox, the trustee received 3,822,436,400 yen from BitPoint, worth around $34,845,330. From then on, at an interv ...Read full story on Cointelegraph