Over $300 million-worth Mt. Gox cryptos sold in open market through BitPoint
Well, in what seems to be another twist in the Mt. Gox case, some leaked documents have revealed that millions of dollars-worth of cryptocurrency from the now-bankrupt Bitcoin exchange Mt. Gox may have been sold in the open market through Japan’s BitPoint exchange.
As per the documents published by Godox, payments worth 34.3 billion yen (312.5 million) were made in Japanese yen from BitPoint to the account of the Mt. Gox trustee, Nobuaki Kobayashi.
According to a team which has been following this matter closely since 2014:
“The new data from the trustee’s bank book coupled with BTC’s price declines in May/June 2018 indicate that the method BitPoint used to conduct the sale affected price discovery. In other words, BitPoint sold on an exchange and not OTC.”
As per a report by Trustnodes, the team further notes:
“May started off with BTC continuing to rally, surpassing $9,900 on May 6. But the price fell steeply and consistently from there. By June 5 the price had fallen to $7,500 USD. Thereafter the price continued to fall to $6,200 as bearish market sentiment dominated after a month of heavy selling by BitPoint.”
If there is an iota of truth in these allegations then it becomes apparent that Kobayashi went against the advice of Jesse Powell, the CEO of crypto exchange Kraken who was hired in 2014 to assist the search for Mt. Gox’s missing coins.
Back in March last year, Kobayashi denied as being the cause for the decline in Bitcoin prices. He said at the time:
“Following consultation with cryptocurrency experts, I sold BTC and BCC, not by an ordinary sale through the BTC/BCC exchange, but in a manner that would avoid affecting the market price, while ensuring the security of the transaction to the [greatest] extent possible.”
In another development on Monday, CoinLab, the Bitcoin incubator, has revised its original claim against Mt. Gox exchange. The company had filed a $75 million case against Mt.Gox on the grounds of breach of contract. A recent Reddit post, a photograph of the CoinLab filing, shows that they have raised the original claim to $16 billion.
Image via Shutterstock
Join our Telegram group