Mt. Gox, the now-bankrupt crypto exchange, once the world’s largest Bitcoin exchange handling over 70% of all Bitcoin transactions until its infamous hack in 2014, is purportedly still selling crypto.
Leaked information from an unknown source indicates that large amounts of Bitcoin (BTC) and Bitcoin Cash (BCH) were sold last year on the on trading platform BitPoint. This newfound information was published on GoxDox, a site dedicated to supporting the creditors of Mt. Gox.
The data published on GoxDox shows images of bank transactions depicting payments in Japanese yen from BitPoint to the account of the Mt. Gox trustee, Nobuaki Kobayashi. The total payments amounted to 34.3 billion yen, about $312.5 million at today’s exchange rate.
As stated by the GoxDox site, it’s most likely that these payments are from Mt. Gox selling Bitcoin and Bitcoin Cash:
“Unless BitPoint is being really generous, we’d wager the reason they are depositing billions JPY into the trustee’s bank account is because they were hired to sell the MtGox Estate’s BTC/BCH.”
The Mt. Gox Story: “The Dumpening”
For the uninformed, Mt.Gox lost about 740,000 bitcoins in 2014 in the world’s largest Bitcoin heist to date. Following the hack, the disgraced exchange recovered roughly 200,000 Bitcoin and has undergone several lawsuits and investigations since.
According to the post published by GoxDox, in 2014 Jesse Powell, the CEO of crypto exchange Kraken, was hired to assist the search for Mt. Gox’s missing coins and advise how the remaining coins should be sold. Powell suggested that the coins be sold via auction or over-the-counter (OTC) to avoid affecting market prices.
However, the leaked data shows that the Mt. Gox trustee, Kobayashi, disregarded Powell’s advice and sold coins on BitPoint. As well, reported back in March 2018, Kobayashi denied being the cause of the market crash in December 2017, when he purportedly sold $400 million worth of Bitcoin and Bitcoin Cash.
The events of Kobayashi selling his substantial stash of Bitcoin and Bitcoin Cash on mainstream cryptocurrency exchanges is referred to as “The Dumpening.” When this phenomenon will end is anyone’s guess, but for as long as Kobayashi has substantial crypto holdings, it is expected to continue.
When will the specter of Mt. Gox stop haunting the crypto industry? Will Nobuaki Kobayashi dump more of his coins on us in 2019? Let us know what you think in the comment section below.