bitcoin Bitcoin
ethereum Ethereum
polkadot Polkadot
ripple XRP
Show details
Mark Karpelès Offers Apology for Mt. Gox Bankruptcy and Wants no Part in the Billion Dollar Settlement Windfall

Caution! Mt. Gox May Have Moved 16,000 Bitcoin To an Exchange Wallet

Reading Time: 2 minutes by on April 27, 2018 Bitcoin, News
Follow by Email

Mt.Gox, the infamous crypto-exchange which was hacked in 2014 of 850,00 bitcoins, has reportedly moved a huge amount of bitcoin (BTC) and bitcoin cash (BCH) to crypto-exchange wallets. If history is any indication of the future – a “dump” of bitcoins on the market, followed by panic selling could be expected soon.

The underlying technology of bitcoin, blockchain, allows anyone to view transactions, and number of BTC held in a particular wallet, given that the viewer has the associated wallet address. This makes it possible for market observers to monitor address associated with fraud, and in this case, fraudulent exchanges.

All cold wallets of Mt.Gox can be viewed here, and several wallets show 2,000 BTC and BCH each moved out, presumably to an exchange wallet.

Following the transaction trail, the 16,000 BTC have been moved to this address:

Image –

Similarly, the 16,000 BCH has been transferred here:

Image – Bitcoin Explorer

Evidently, the fraudulent exchange moved $144 million worth of BTC, and $21.7 million worth of BCH, as per data on CoinMarketCap at the time of writing. All cold wallets hold a maximum of 2,000 BTC and BCH each, with four wallets completely drained as a result of the transfer.

Referring to the wallet’s previous transactions, Mt.Gox transferred an estimated $500 million (in coin value) between December 2017 and February 2018.

Allegedly, Mt.Gox’s past sell-off of BTC, valued at an estimated $400 million, caused the price of bitcoin to plunge as low as $6,000.

On analysing historical data of the crypto-market, Mt.Gox’s coin transfers closely correspond with huge drops in BTC/BCH value. This can be attributed to investors viewing huge sell orders on their exchange – and anticipating a price drop – selling their coin holdings themselves.

In an unscrupulous manner, Mt.Gox presumably unloads their holdings at once, thus adding to the investor’s panic.

According to cryptocurrency trader Ivo Jonkers:

“The last time this happened, Mt. Gox proceeded to sell the funds at market rate, practically sending the entire market in the red. I wouldn’t be surprised if this happens again.”

Mt.Gox Wallets Controlled By Trustee

As reported by BTCManager, all Mt.Gox cold wallets are under the control of a Tokyo-based lawyer and Mt.Gox trustee, Nobuaki Kobayashi.

Once the largest bitcoin exchange, Mt. Gox was haplessly hacked in 2014, causing huge uncertainty regarding bitcoin’s security and future. A criminal investigation was soon launched, but unfortunately, the culprits have not been identified till date.

However, Mt. Gox continued to hold its remaining BTC and sell them at a future date, vowing to repay investors with the proceeds.

Kobayashi is entrusted with this responsibility, and according to reports, has over $1.9 billion in digital assets remaining to be sold. The price of bitcoin has not been dampened yet though, rising back above the $9,000 handle on April 26, and trading above $9300 during April 27’s European session.

Like BTCMANAGER? Send us a tip!
Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4
Join our telegram channel