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Mt.Gox's Bankruptcy Trustee Sells $230 Million Worth of Bitcoin and Bitcoin Cash

Mt.Gox’s Bankruptcy Trustee Sells $230 Million Worth of Bitcoin and Bitcoin Cash

Reading Time: 2 minutes by on September 25, 2018 Altcoins, Bitcoin, Business, Exchange, Finance, News
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The trustee liquidating cryptocurrencies on behalf of the now-defunct exchange Mt. Gox has offloaded another 25.98 billion yen, or around $230 million, of Bitcoin and Bitcoin Cash, Bloomberg reported on September 25.

The Tokyo Whale

Mt. Gox’s bankruptcy trustee, Japanese lawyer Nobuaki Kobayashi, better known as the “Tokyo Whale” in cryptocurrency circles, offloaded 25.98 billion yen ($230 million) worth of Bitcoin (BTC) and Bitcoin Cash (BCH) on behalf of the exchange.

According to Bloomberg, the disposals have been incrementally made since the tenth creditors meeting was held on March 7, 2018. Kobayashi disposed of cryptocurrencies worth roughly 42 billion Japanese yen (~$372,204) at that time made up of 35,841.00701 BTC and 34,008.00701 BCH.

Finance Magnates reported that Kobayashi released a document detailing measures taken to secure the interests of creditors, specifically, the sale of large amounts of cryptocurrency for fiat money. According to the document, these measures were a requirement of the bankruptcy proceedings and based on the findings of a February 2018 examination report.

The trust, which was created to manage the bankruptcy proceedings through the sale of recovered cryptocurrencies, was set up between Kobayashi and the Sumitomo Mitsui Banking Corporation, held 15.8 billion yen (~$140,000,000) at the time of its establishment.

While Kobayashi didn’t provide details of his strategy for selling the coins, Bloomberg reported him saying he tried to get “as high a price as possible.”

Kobayashi Faces Harsh Criticism

Many investors have been following Kobayashi’s moves with keen interest, as they believe that the trustee’s selloff could be the cause of bitcoin’s recent drop in value.

Finance Magnates reported that the cryptocurrency community railed against Kobayashi for selling 18,000 BTC on February 5, causing bitcoin to crash to a three-month low of nearly $6,000 the next day.

While many blame Kobayashi for the drop in the coin’s value, he faced the most criticism regarding the manner in which he conducted the sales. Kobayashi sold the funds on order-book exchanges, rather than using an over-the-counter broker as most large-scale buyers and sellers do, thus magnifying the impact that the sales would have on the spot bitcoin price.

The move also contrasts a statement Kobayashi made back in June 2018 when the Tokyo District Court had initiated the commencement of civil rehabilitation proceedings for Mt. Gox. According to the translation of Kobayashi’s statement, he said that there were currently no plans to liquidate the estate’s remaining cryptocurrency holdings.

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