The 'Mt Gox Whale' Explains His Crypto-Selling Strategy

On March 17 the Mt Gox bankruptcy trustee Nobuaki Kobayashi revealed some critical information about how he’s been selling the BTC and BCH he has in his possession. The news may comfort those who believe the remainder of the Mt Gox sales will crash the market. According to Kobayashi he has been consulting cryptocurrency experts and selling in a manner that would avoid affecting the market price.

Also read: Québec Premier: We’re Not Really Interested in Bitcoin Mining

The ‘Mt Gox Whale’ Sold BTC and BCH Between December 2017 and February 2018 on Separate Occasions

The bankruptcy trustee from Tokyo, Nobuaki Kobayashi, is now referred to as the ‘Mt Gox Whale’ on social media and many cryptocurrency centric forums. On Saturday, March 17, the trustee disclosed to the public exactly how he was offloading the cryptocurrencies he holds, as he still has another $1.9 billion worth of BTC and BCH to sell. This massive amount of holdings waiting to be sold has concerned bitcoin traders, because they think the sales could hurt the BTC and BCH market value.

“I sold BTC and BCH from December 2017 to February 2018,” explains Kobayashi in response to questions about the sale.

I sold BTC and BCH separately — Therefore, the total amounts of BTC and BCC sold until the time I ceased selling are different.

Kobayashi Consulted ‘Cryptocurrency Experts’ and Did Not Sell the Cryptos Using an Ordinary Exchange

According to the trustee, he consulted “cryptocurrency experts” during the BCH and BTC sales, and he did not use the traditional method of using a digital asset exchange. Further Kobayashi says analyzing the movement of the public addresses is useless, as the assumption that the assets were sold at those exact times is “incorrect.”

“Following consultation with cryptocurrency experts, I sold BTC and BCH, not by an ordinary sale through the BTC/BCH exchange, but in a manner that would avoid affecting the market price, while ensuring the security of the transaction to the extent possible,” Kobayashi details.

The method of sale of BTC and BCH was approved by the court as well — I would like to refrain from explaining the details of the method of sale; otherwise the future sale of BTC and BCH could be hindered — At present, nothing has been determined regarding the sale of BTC and BCH in the future.

Besides the $1.9 billion worth of digital assets remaining under the trustee’s supervision, he is also supervising the cash collected from the last sale. The approximate holdings of JPY 44,000,000,000 in cash were only recently secured says Kobayashi, and he will determine when creditors will get their restitution settlements in the near future.

What do you think about the Mt Gox trustee’s statements? Do you think his sales affect the open market? Let us know what you think about this story in the comments below.

Images via Shutterstock, Pixabay, and the Tokyo courts.

At news.Bitcoin.com all comments containing links are automatically held up for moderation in the Disqus system. That means an editor has to take a look at the comment to approve it. This is due to the many, repetitive, spam and scam links people post under our articles. We do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published.