Mt. Gox Trustee Raises USD 400 Million from Bitcoin Sale, Likely to Have Pressured Prices

The huge supply could be a key reason for recent Bitcoin price crashes

by Coins.Online
07 March • 3.5 min
In News
Nobuaki Kobayashi, a controversially famous figure in the crypto world, revealed on Wednesday he has sold over USD 400 million worth of Bitcoin (BTC) and Bitcoin Cash (BCH) in the period between September 2017 and February 2018.

Kobayashi made this in the role of bankruptcy trustee for Japan’s Mt. Gox, which was the biggest Bitcoin exchange in the world before collapsing in 2014.

The goal of the sale, which involved mainly BTC and only 10% BCH, was to return fiat money to Mt. Gox creditors, Kobayashi said in a statement, but it may have had far bigger implications on the crypto world.

Nobuaki Kobayashi

What Shows the Data

According to Blockchain data analysis, elaborated by Trustnodes, the timing of the sales coincides with the plunge in Bitcoin prices in December, as well as with several subsequent BTC price drops. The analysis is based on in-depth research of MT Gox’s Bitcoin addresses by crypto enthusiasts. It claims that Kobayashi sold 2000 Bitcoins on 18 December, when BTC traded at all-time highs of around USD 19 000, just before sliding down in the following days. Next, the trustee sold 6 000 Bitcoins on 22 December, when the coin lost about a third of its value to a daily low of USD 10 800.

Kobayashi sold another 32 000 Bitcoins in three rounds in January and February, according to the analysis, pressing down prices with the huge supply. BTC has recovered since 5 February, the day of the last sale, gaining more than 70%.

Bitcoin transactions

It cannot be sure that Mt. Gox is the only culprit for the recent Bitcoin price crash, but the analysis suggests this could have had a significant influence.

According to Kobayashi’s statement, he sold a total of 35 000 BTC at an average price of USD 10 105 after trying to get “as high a price as possible”. Thus, Mt. Gox remains with around 170 000 Bitcoins more, or some USD 1.7 billion at current prices, to offload. The trustee plans to consult with the court on further sale of BTC and BCH to compensate nearly 25 000 accepted claims from creditors.

The largest bankruptcy in crypto history saw Mt. Gox losing 850,000 Bitcoins, then worth about USD 500 million, blaming hackers for the loss. Some 200 000 units were later recovered, while CEO Mark Karpeles, who was arrested and released on bail, insists that his exchange, founded initially for buying and selling “Magic: The Gathering” game playing cards, had nothing to do with the scam.