For the strong drop in price of crypto-currency Bitcoin apparently huge Bitcoin sales by the insolvency administrator of the once largest bitcoin exchange Mt. Gox were partly responsible. In the past six months, the bankruptcy administrator sold Bitcoin worth about $ 400 million, as announced last week.
Mt. Gox was the largest Bitcoin exchange ever. More than 70 percent of all Bitcoin transactions took place on Mt. Gox. After a theft of 850,000 Bitcoin and fraud allegations, however, the stock market had to stop operating in February 2014 and fill for bankruptcy.
The insolvency proceedings are still ongoing. Over the past six months, insolvency administrator Nobuaki Kobayashi has monopolized part of the cryptocurrency assets on behalf of the Mt. Gox creditors.
To pay off the creditors, the insolvency administrator has sold since September 2017 a total of 35,841 Bitcoin and 34,008 Bitcoin Cash. The amount of Bitcoin sold represents about ten percent of the amount of coins that were created worldwide by mining in the relevant period. As a result of the insolvency administrator’s sales, the supply of Bitcoin increased significantly.
In the crypto scene it is now speculated that the insolvency administrator might first take a break – or even stop selling the remaining Bitcoin. The next court hearing in the course of the insolvency proceedings is only scheduled for 18th September 2018. Until then, Nobuaki Kobayashi has no authorization to sell more Bitcoin, the well-connected Bitcoin blogger Coin Panda wrote on Twitter.
But it could even be that the sales would stop altogether. The insolvency administrator wants to check namely whether the remaining 166,000 Bitcoins could not flow directly to the creditors – instead of selling them first.
Paradoxically, Bitcoin sales already seem to satisfy all claims of Mt. Gox’s creditors. This is possible because the value of Bitcoin has multiplied since the date of the bankruptcy petition in 2014. After the Bitcoin rally in recent years, the assets now clearly exceed the liabilities. In retrospect, Mt. Gox is not insolvent.
The assertion that the sales by the insolvency administrator could be terminated for the time being, was not contradicted, however not. A Japanese Twitter user wrote that the insolvency administrator could also sell the remaining coins before the court hearing in September. The insolvency administrator already has the opportunity to sell all coins.
Whether the insolvency administrator sells more coins is easy to observe. The Bitcoin addresses containing the coins from the Mt. Gox bankruptcy estate are publicly known. On this page will automatically be observed if it comes back to transactions in these wallets. Obviously, it has not come to further sales.
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Categories: Crypto Currency