Source Leaks New Information Regarding Mt. Gox Exchange

Source Leaks New Information Regarding Mt. Gox Exchange

The now infamous Mt. Gox Bitcoin exchange was originally based in Tokyo, Japan. 3-4 years after it was launched in July 2010, the exchange was dealing with over 70 percent of all Bitcoin transactions on an international scale. This made it one of the biggest Bitcoin intermediary and the world’s leading Bitcoin exchange.

By the end of 2014, the exchange was bankrupt. The massive exchange lost more than 700,000 Bitcoins which was worth around $500,000 at the time. In the end, 200,000 of the lost Bitcoins were recovered but the remaining tokens are still yet to be found.

Most people in the crypto community will remember the Mt. Gox hack as it was pretty big at the time. A lot of people lost their investment leaving them furious and empty-handed.

Now, the trustee for the rehabilitation proceedings of the now-defunct crypto exchange has reportedly sold big amounts of Bitcoin and Bitcoin Cash on the trading platform BitPoint.

An unknown source has allegedly released information from the legal proceeding involving Mt. Gox at the Tokyo District Court and showed it to Mt. Gox creditor campaign group GoxDox.com.

The information reportedly confirms that the Mt. Gox trustee, Nobuaki Kobayashi, sold going on a major exchange to repay creditors.

GoxDox writes, that “unless BitPoint is being really generous, we’d wager the reason they are depositing billions JPY into the trustee’s bank account is because they were hired to sell the MtGox Estate's BTC/BCH.”

The whole process of compensating users who lost their funds in Mt. Gox’s massive hack five years ago has been a long, drawn out one with controversy.

From the late months of 2017 and into 2018, the suspected sell-offs from Kobayashi were rumoured to be manipulating Bitcoin’s price because of their size.

“Discussing the phenomenon of what is referred to as the “Dumpening,” well-known cryptocurrency figures noted that Kobayashi or an associate may have openly sought to use mainstream sales channels from the start.”

The CEO of the San-Francisco based crypto exchange Kraken, Jesse Powell has previously said that his platform had received a request about methods of large scale selling, something GoxDox now also references. In addition, to this, Powell noted that Kraken’s suggestions for selling coins in an auction or with an over-the-counter broker were not acted on.

The total amount involved from the leaked documents is around $318 million.

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