With failed cryptocurrency exchange Mt Gox now set to provide some form of compensation payments, heads are now turning towards Nobuaki Kobayashi, also known as the Tokyo Whale and one of Bitcoinâs more prolific holders. Why? Kobayashi has been found to have sold off around $230 million in Bitcoin since March 2018.
Remember those price falls that seemed to take place in line with a huge Bitcoin sell off (from wallet addresses that were suspected to be involved in Mt Gox), well it now seems that these coin dumps could have been as a result of Kobayashiâs selling.
After further research into the selling patterns, it transpires that Kobayashi will have earned around $8,100.00 per Bitcoin, based on the timing of the sales.
As we now know, Mt Gox are being held responsible for the repayment of lost assets to their creditors who lost out during the prolific Mt Gox hack. As a result of this it is expected that Mt Gox will have to pay out around $1 billion, clearly, some of this may eventually end up coming from Kobayashiâs riches, though thereâs no guarantee that this will be the case.
What next for Mt Gox?
Mt Gox are now liable to make payments to creditors that lost out during the hack, though we are still unsure if these payments will be made in FIAT or Bitcoin, nor do we know when or how the payments will be made. We do know that if the payments are made via Bitcoin, and are in bulk, it could have a dramatic impact on the markets.
Simply bit, Mt Gox could in theory move $1 billion to various wallets within a day, the markets wouldnât take kindly to this to say the least.
Of course, this is a worst case scenario. As this is all a part of legal proceedings we expect that a safe and secure approach will be taken in the way Mt Gox have to pay back creditors. Hopefully, for the sake of those out of pocket, we finally see an end to this saga, a saga that seems to have dragged on for eternity.