Bitcoin investors blame Japanese bankruptcy laws for Bitcoin price changes
March 9, 2018 3:17 pm
Angry bitcoin traders are railing against Bitcoin sales by the trustees from collapsed Japanese crypto exchange Mt Gox.
Annoyed bitcoin traders are raising a massive turmoil against bitcoin sales by the trustees of funds from collapsed Japanese crypto exchange Mt Gox. Mt.Gox was one of the most significant exchange platforms that were launched in 2011 but filed for bankruptcy in 2014 after being hit by a $US450 million ($578 million) hack.
It was reported by Bloomberg on Wednesday that the Tokyo attorney and bankruptcy for Mt.Gox’s funds, Nobuaki Kobayashi, revealed in a creditor’s meeting this week that he has sold $US400 million of Mt Gox’s bitcoin since last September. Kobayashi plans to repay the creditors of the business and control a pool of 166,000 bitcoins as of March 5.
Alistair Milne, the bitcoin investor, pointed out on Twitter that more than half of the bitcoin Kobayashi sold was transferred to an exchange on February 5, the day before bitcoin hit a three-month low of close to $US6,000.
Another investor, Matt Odell wrote on Twitter:
“They panicked and sold the bottom. The market absorbed it well.”
However, other bitcoin investors and traders are angered because such a massive amount of bitcoins was sold in the market when prices were under pressure. In spite of hitting a high above $US20,000 in December, bitcoin critically reduced to below $US10,000 in mid-January. The cryptocurrency, or the broader market, hasn’t recovered since and is trading at just under $US10,000 as of the morning of March 8.
On Thursday, an article accusing Mt.Gox’s trustees of trying to “to crash bitcoin” was linked by the most popular thread on Bitcoin subreddit along with the highest rated comment says:
“Just give the people their money in BTC and let them decide what to do with it. This is the horse—t.”
A similar comment followed-up from the same user: “It’s having the effect of causing the price to drop with each selling period.” Another member said: “Why didn’t he sell the BTC at auction like other assets often get sold during bankruptcy? If he sold on the spot market, only an idiot would think you wouldn’t suffer slippage.”
A separate thread on the Bitcoin sub-Reddit makes the same point, saying: “Is there a way to ask this Mtgox trustee guy to use an OTC desk next time (or do an auction as the FBI did with Silk Road’s 144,336 BTC)? And to NOT do market dumps?”
A comment on that thread reads: “For the sake of Bitcoin survival somebody gets a hold of the trustee asap to use a better mechanism to distribute those coins!”
The suggestions were given by traders specify concerns about the sales done at large which negatively affects the price of the asset. Any proceeds left after Mt Gox’s creditors are paid will go to Mark Karpeles, the founder of Mt Gox. The eccentricity of Japanese bankruptcy law angers the bitcoin community, and according to them, Mark Karpeles, the founder of Mt.Gox shouldn’t reap any benefit from the collapse of Mt Gox.