$140 million worth of Bitcoin Moved from Mt. Gox Wallet


Speculations that the now defunct Bitcoin exchange Mt. Gox is preparing to liquidate more coins after approximately 16,000 BTC associated with it were moved on Thursday.

CryptoGround—a service that oversees Mt. Gox’s Bitcoin and Bitcoin Cash wallets—first flagged the transactions worth $141 million. Based on blockchain data, the coins came from multiple addresses and were fused into a single wallet. The source address was left with 0 BTC.

Similarly, the 16, 000 stored Bitcoin Cash that corresponded to the same addresses were moved too. Those coins are estimated to be worth $21 million at the present exchange rate.

These transactions set off questions on whether Nobuaki Kobayashi, Tokyo lawyer who manages Mt. Gox’s estate, is planning to sell the funds to reimburse the company’s creditors.

Kobayashi was revealed to have sold more than $400 million worth of BTC and BCH to cover the company’s JPY liabilities. He received a lot of criticism for selling the coins on order-book cryptocurrency exchanges instead of over-the-counter (OTC) channels institutional traders normally use.

There were some speculations that Wednesday’s hard market decline may have been due to Kobayashi selling the coins at a below-market price to an OTC buyer. Although the coins would have been only delivered today, the buyer could have sold the coins they own at the market rate, making a profit from arbitrage but driving the price lower.

It is also entire possible that Kobayashi is simply consolidating assets, and rumors that he is preparing to sell them (or already sold them) are simply just that –rumors.

In the meantime, several Mt. Gox creditors continue to push for the company to be moved into civil rehabilitation, which would allow them to be directly paid back in Bitcoin. For now, they are to be compensated in flat at $480/BTC, roughly the same price BTC was trading when the company filed for bankruptcy.

Former Mt. Gox CEO Mark Karpeles said in an interview that he wants to see the exchange move into civil rehabilitation.


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