Since then, Mt.Gox and Mark Karpeles (it’s CEO at the time) who secured an early release for his mishaps, have the subject of interest as the situation of the Mt.Gox debts continues to unfold.
According to reports from a creditors’ meeting that took place early on March the 7th in Tokyo, a Mt. Gox Trustee sold approximately half a billion dollars worth of Bitcoin and Bitcoin Cash between December 2017 and January of this year. While he provided no reasoning as to why he sold the cryptocurrencies, he did make this statement:
“Between the 9th creditors’ meeting and this creditor’s meeting, with the permission of the court, I sold a certain amount of BTC and bitcoin cash (“BCC”) that belonged to the bankruptcy estate. The quantities sold and the amount paid into the bankrupt trustee’s account are shown below. (The trustee sold 35,841.00701 Bitcoin and 34,008.00701 Bitcoin Cash for a total of $407 million.)
As a result of the consultation of the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above.
I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of the sale. I plan to consult with the court and determine further sale of BTC and BCC.”
In addition to the amount that the trustee sold last year and this year, it is said that the trustee also owns another 165,000 Bitcoin and 165,000 Bitcoin. What the trustee intends to do with the rest of these cryptocurrencies is not yet known.
Although the amount has been sold, it is doubtful that any of the funds will actually be distributed for anywhere up to five years. The trustee is making plenty of claims that still need to be evaluated by the court of law, such as the petition made by the trustee to bankrupt Mark Karpeles, who is the former CEO of Mt. Gox.
This may be due to the fact that the court is thinking about Civil Rehabilitation, which is a law that gives a company the ability to force a lender to change the terms of their agreed loan in order to help the company rid themselves of their debt. The court has found no reason yet to dispute the possibility of Civil Rehabilitation. However, the examiner who was assigned to the case made this statement:
“However, this conclusion is based on the premises that measures are taken to secure the interests that are expected to have already been obtained, in light of the size of the bankruptcy estate that has been established in the bankruptcy proceedings, by all creditors who filed proofs of claims for the pending bankruptcy case against the Bankrupt Entity, especially creditors whose bankruptcy claims are monetary claims, before the order of commencement of civil rehabilitation proceedings is made, i.e., before the stay of the bankruptcy proceedings.”
Bitcoin and cryptocurrency enthusiasts have reportedly blamed this sell off for the decline in value over the course of the early months of 2018. Against claims of the trustee saying that his selloff didn’t affect the value of the two cryptocurrencies he was selling large quantities of.
Even if this sell off isn’t fully over, adoption in general is growing, regulatory bodies across the globe are looking to incorporate cryptocurrencies, the way forward looks very strong.
For those who are interested in this story and would like to learn more about it, you can find the full report by the trustee here and you can see more of what Mark Karpeles had to say about the situation here.
Date Published: Tuesday April 3, 2018
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