More than $140,000,000 worth of Bitcoin
and Bitcoin Cash saw themselves being moved from Mt. Gox’s cold wallets this past Thursday. A very big move that can be a cause for concern for the valuation of Bitcoin.
The world of cryptocurrencies
has seen a lot of good times and plenty of bad. During the time that regulatory bodies just shrugged their shoulders when they heard of Bitcoin and other cryptocurrencies but they did manage to bat an eye brow or two, the trading of cryptocurrencies globally was rampant. From the very short time of half a decade between 2009 and 2014, Bitcoin saw a sharp rise in popularity and it became a multimillion dollar ecosystem.
The cryptocurrency exchanges operating at the time were very few in number and one of them Mt. Gox based in Japan was the most popular cryptocurrency exchange on the planet. In fact, the trade volume that Mt. Gox accounted for at its peak was 80 percent of the total trade volumes of the planet. This made Mt. Gox the cryptocurrency exchange which held most of the cryptocurrency funds in the world at the time until the debacle of 2014 happened.
The Mt. Gox Scandal
Mt. Gox enjoyed its position as the world’s leading cryptocurrency exchange
until 2014 when the funds started to get siphoned off of the exchange’s wallet and stolen. This also saw the company’s CEO cease operations of the cryptocurrency exchange and declare that the cryptocurrency exchange has gone bankrupt. At the time, this created widespread panic in the Bitcoin ecosystem and caused a significant crash in the prices but the world of cryptocurrencies soon recovered.
This was regarded as the biggest cryptocurrency theft at the time it happened and is still considered to be one of the most significant events to have taken place. The allegations against the CEO Mark Karpeles of embezzlements and fraud soon followed. The CEO is currently amidst facing the class action lawsuits and embezzlement charges filed against him while the people affected by the scandal are being compensated right now.
$140,000,000 in Cryptocurrency Being Moved
While all of that is happening, the Japan based lawyer Nobuaki Kobayashi has been made in charge of liquidating the funds from the cold wallets of the defunct Mt. Gox cryptocurrency exchange and repaying the affected people. With the $140,000,000 worth of cryptocurrencies in the form of Bitcoin and Bitcoin Cash being moved from the cold wallets, there are many concerns rising because the selling of those cryptocurrency units. It will result in a major impact on the valuation of Bitcoin and Bitcoin Cash which had been seeing tough times but have recently both managed to go up.
Other than the massive sell off being a cause of concern for the cryptocurrency world, the fact that the compensation will be rewarded to the affected people is going to be done in cash. Bitcoin and Bitcoin Cash both are valued at much higher prices since when the funds were stolen so even after they are all paid back, there will be a lot of cryptocurrency left over.
Adding to the controversy further, Mark Karpeles does not want to claim ownership of those left over yet significant number of tokens. It remains to be seen what the exact course of action will be but as of now, the Bitcoin and Bitcoin Cash have all been consolidated into two wallets as part of the process of paying back the dues that Mt. Gox owes its former clients.
is a Bitcoin pioneer, a social economist and digital currency trader. His work in this field is legendary. In 2011, at the dawn of the crypto era, he founded BitInstant, the first and largest Bitcoin company. In 2013, he founded the Bitcoin Foundation and serve as its vice chairman. Since then, Charlie has advised more than a dozen digital currency companies, launched and managed numerous partnerships between crypto and non-crypto companies, and is the go-to guy for some of the world’s wealthiest entrepreneurs. In short, he is the ultimate insider at the epicenter of the crypto universe.
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