Mt Gox Trustee Sold $230-M in Bitcoin, Bitcoin Cash Since March
The trustee for the now-defunct Japanese cryptocurrency exchange Mt. Gox has revealed new details about the pace of cryptocurrency sales as part of the firm’s bankruptcy and rehabilitation process.
Attorney Nobuaki Kobayashi explained in a 25 September notice on the Mt. Gox website that over $230-M worth of bitcoin (BTC) and Bitcoin Cash (BCH) had been exchanged for paper (fiat) currency between 18 March and the start of civil rehabilitation on 22 June.
According to the notice, the trustee sold 24,658.00762 BTC and 25,331.00761 BCH quantities that brought in 25,975,702,352 Japanese Yen (JPY), or $230,269,821.82.
Following the sale, the balance in the trustee account was “approximately JPY 70,059-M,” or around $621-M, Mr. Kobayashi added.
In the notice, the trustee also explained that a trust has been set up to preserve funds in fiat for bankruptcy creditors of the exchange.
Explaining the move to sell off the cryptocurrencies before the civil rehabilitation was initiated, Mr.Kobayashi wrote it was “necessary and appropriate to procure a suitable amount of money to secure the interests [of] the creditors for the principal amount and delay damages of the determined and undetermined bankruptcy claims” before the trust was set up.
While some creditors had applied for fiat refunds from the remaining holdings of Mt. Gox, others had requested to have their balances in cryptocurrency returned, since the values of BTC and BCH have climbed far above the levels seen at the time of the exchange’s closure in Y 2014.
While likely good news for creditors seeking to be repaid in fiat, the sell-offs have not been welcomed by some quarters of the cryptocurrency ecosystem. Indeed, some have argued that the Mt. Gox trustee sales are partially behind the bear market seen across cryptocurrencies since the start of the year.
Back in March, CoinDesk reported that $400-M in BTC and BCH had been sold off in the preceding months by the Mt Gox trustee, with Mr. Kobayashi stressing that the process was being carried out in a way that would not negatively impact the market.