Mt. Gox Trustee May Have Crashed Bitcoin in 2018 by Dumping It on an Exchange, but There is Still Hope

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The now-defunct cryptocurrency exchange Mt. Gox reportedly liquidated around $312 million worth of Bitcoin throughout February and June of 2018 through a Japanese exchange called BitPoint.

GoxDox, an organization that was established to assist Mt. Gox creditors, released a photograph of a bank account statement on February 5 showing the alleged transactions sent from BitPoint to the Mt. Gox trustee led by Nobuaki Kobayashi.

If needed, Powell previously said that the trustee has to liquidate the remaining Bitcoin funds on an over-the-counter trading platform to minimize its impact on the price of Bitcoin.

According to GoxDox, the Mt. Gox trustee began to sell the exchange's Bitcoin holdings starting in early 2018, possibly even before February.

The researchers said that the frequent wire transfers supposedly initiated from the bank account of BitPoint to that of the Mt. Gox trustee show the trustee's intent to hide the transactions in an event of a security breach on the side of BitPoint.

The trustee likely expected a public backlash if it were revealed that the trustee had been selling large amounts of Bitcoin in the public cryptocurrency exchange market, putting the price of BTC at a significant risk of dropping.

The trustee was heavily criticized by industry experts including GoxDox researchers, who said that Mt. Gox creditors need to demand an explanation from the trustee to clarify the reasoning behind the dismissal of the advice of Kraken.

How does Mt. Gox move on from here?On Jan. 22, Brock Pierce, a cryptocurrency investor and the co-founder of Blockchain Capital, who played a vital role in the development of EOS, revealed an ambitious plan to revive Mt. Gox and to repay all of the creditors of the exchange.

Mt. Gox could distribute its $1.2 billion Bitcoin holdings in the next two months and rush the process of obtaining a license from Japan's Financial Services Agency to begin operating as a regulated cryptocurrency exchange.

There still exists a possibility that the creditors could immediately sell the BTC in the exchange market, which may have a similar effect as the reported Mt.Gox's trustee sell-off in February of last year.