Traders of bitcoin are angry at the trustees of the bankrupt Mt Gox crypto exchange for selling $400 million worth of cryptocurrency – a move trustees has been doing since Mt Gox’s 2014 bankruptcy filing in order to raise funds to pay its creditors, but bitcoin traders believe that the move was Mt Gox’s trustees’ way of making bitcoin crash.
According to Bloomberg, Nobuaki Kobayashi – a Mt Gox bankruptcy trustee and Tokyo attorney responsible for liquidating funds to pay creditors back – revealed during a creditor’s meeting that he was able to sell $400 million worth of Mt Gox’s bitcoin since September 2017.
Alistair Milne, an investor of bitcoin, noted on his Twitter account that the cryptocurrency sold by Koabayashi was sent to an exchange on February 5, a mere day prior to bitcoin hitting a three-month low of almost $6,000. Other investors of bitcoin are fuming because a large quantity of bitcoin was sold to the market during a time when cryptocurrency costs were under pressure. Bitcoin’s December $20,000 high plummeted to $10,000 in January and has yet to recover. As of March, the digital currency is trading at below $10,000.
Mt Gox, once touted as the biggest crypto exchange in the world since it was launched in 2010, filed for bankruptcy in 2014 when it fell victim to a $450 million hack. Funds left in its possession were put in a trust in order to pay its creditors back.
The most popular comment on Reddit’s Bitcoin thread blatantly accuse the trustees of Mt Gox of attempting to “crash bitcoin”. The thread’s highest rated comment declared, “Just give the people their money in BTC and let them decide what to do with it. This is horse—t.”
Essentially, commenters are united in their opinion that the large quantities of bitcoin being dumped in the market is badly affecting the asset’s cost. Based on Japan’s bankruptcy laws, once Mt Gox’s creditors are appropriately paid, Mt Gox founder Mark Karpeles will be receiving the remaining proceeds – an action most in the bitcoin community vehemently disagree with as they believe Karpeles should not in any way reap any form of benefit from Mt Gox’s collapse. Karpeles, who is facing embezzlement charges in Japan, is currently on bail.