Looking for someone to be mad at for the drop in value of Bitcoin? The term “bitcoin whale” was coined in reference to the 1,000 people who own 40% of all bitcoin. Everyone in cryptocurrency knows the massive effect these billionaires have, and thanks to the Mt. Gox bankruptcy we got some insider information on what caused the crash of Bitcoin in 2018.
Dubbed the “Bitcoin whale of Tokyo”, Nobuaki Kobayashi revealed on Wednesday that he has sold off $400 million worth of Bitcoin (BTC) and Bitcoin Cash (BCH) since late September of 2017.
Kobayashi was the bankruptcy trustee for Mt. Gox, which was the largest bitcoin exchange in the world before it was hacked, allowing the criminals to get away with 850,000 bitcoin, which was worth $450 million at the time and billions at today’s prices. He said that he started selling in late September, meaning it’s highly likely that he sold a decent percent of the coins at the highs reached at the end of 2017.
Kobayashi made this disclosure in the report from the 10th creditors’ meeting, which took place Wednesday.
As the report explains, he said he’d started selling off the bitcoin and bitcoin cash to raise money for disbursements that the trustee would soon need as bankruptcy claims are being evaluated, according to Bloomberg.
Which brings us to the crash of Bitcoin from December 2017 through February 2018, which Matt Odell presented us with the list of transfers from their Bitcoin (BTC) and Bitcoin Cash (BCC) wallet.
As Odell explained, “More than half of the bitcoin they sold (18,000 btc) was transferred to an exchange on February 5th. This was the day before Bitcoin hit a three month low of under $6,000. They panicked and sold at the bottom, with the market absorbing it well.
This is a glimpse of what Kobayashi’s “sells” look like on the chart of bitcoin:
Odell explains, “The arrows on the chart above markt he dates of each Gox wallet transfer. Worth noting, these aren’t the dates of the sales, those most likely happened right after, these are the dates of the transfers to the exchange.”
This reveals who the mysterious ‘man’ on the sell-side of Bitcoin was for two months… and things could continue to get worse. Bloomberg reports that Kobayashi has an additional $1.9 billion which he intends to continue selling soon.
Kobayashi disclosed deep in the report that he has made an inquiry into any information US prosecutors have on Alexander Vinnik, a Russian national who has been charged with laundering $4 billion in stolen Mt. Gox bitcoin through his old, now defunct exchange, BTC-e.
It is unknown at this time whether or not Kobayashi intends to recover some of the stolen funds from Mt. Gox.
Read the full report below:
Keep the additional $1.9 billion in bitcoin to be sold in the near future in mind when trading in the future.
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