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Mt Gox bankruptcy trustee sells off $400 million USD in Bitcoin

New reports have revealed that Nobuaki Kobayashi – a bankruptcy trustee behind defunct Japanese exchange Mt Gox – was behind the sale of some $400 million USD in Bitcoin and Bitcoin Cash.

While Bitcoin traders might well have scratched their heads at the news that some $400 million USD in BTC had been sold in recent months, some light has shone upon the mystery today as Nobuaki Kobayashi – a bankruptcy trustee for the now defunct Japanese exchange Mt Gox – has been revealed to be behind the sale.

The details of the sale reveal that Kobayashi had liquidated some 35,841.00701 BTC and 34,008.00701 BCH – equating to a sale of some $405 million USD at the time of sale.

The number correlates with the number of claims made against Mt Gox, which infamously collapsed in 2014 under claims of insolvency. In recent months, wallets associated with Kobayashi saw withdrawals, where as much as 18,000 BTC was moved on the 5th of February.

In an official statement, Kobayashi elaborated that:

“As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above. I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of sale.”

Kobayashi’s report highlights that additional liquidations could be forthcoming – with the trustee writing that “I plan to consult with the court and determine further sale of BTC and BCC.”

Kobayashi is in possession of some 166,344.35827254 BTC at the time of writing, equating to a fortune of some $1.7 billion USD.

The news has been met with derision in cryptocurrency circles, with pundits decrying that the move represents the fourth time movements related to Mt Gox had directly or indirectly punished Bitcoin prices across the board.

The argument comes amidst the fact that Kobayashi had sold some $6,000 BTC on December 22nd of 2017, wherein Bitcoin prices fell from $16,000 USD to $10,800 USD.

Similarly, Kobayashi’s sale on the 15th of February marked a new 60-day low for Bitcoin prices.

It remains to be seen when – and if – Kobayashi will proceed to trigger additional sales of either Bitcoin or Bitcoin Cash.

Have your say!

What are your thoughts? Would further transparency on Kobayashi’s next sale help markets react appropriately? Be sure to let us know your thoughts on Twitter – join the conversation @coininsidercom!