Mt. Gox Still Sticking It To Bitcoin Investors
In the infancy stages of Bitcoin, Mt. Gox was launched in 2010 and eventually became the largest exchange in the world. However, the company was forced to file bankruptcy in 2014 due to a massive hack, in which $450M worth of bitcoin were stolen. All remaining funds were place into a trust with the purpose of paying back creditors. In charge of this task is Nobuaki Kobayashi, a Tokyo-based attorney and bankruptcy trustee for Mt. Gox. Kobayashi's job is to liquidate Mt. Gox's remaining funds of about 166,000 Bitcoins to pay back creditors.
As of March 5, one day before Bitcoin hit it's 3-month low of around $6k, it was noticed that Kobayashi sold 18,000 Bitcoin on an exchange. According to Bitcoin investor, Matt Odell:
The problem with this, as has been expressed by numerous traders and investors, that from a company already saddled with negligent behavior, it is irresponsible to sell such a large amount of Bitcoin into market while prices are already under pressure to sustain. With the price of Bitcoin falling from nearly $20k in December, to $10k in January, and is still trading near this price point currently.
The Reddit sub, /r/Bitcoin, was abuzz with criticisms regarding the way this situation was handled. Many asking why the Bitcoin weren't sold at an OTC desk, or sold on auction, the way other bankruptcy-related assets are typically dealt with. The common point within these threads and comments is that Kobayashi is going about the offloading of these large sums of Bitcoin all wrong; these large exchange-based sell offs are negatively affecting the market. What's more is that there are still $1.9 billion of Bitcoin to jettison, meaning those involved in the market have a seriously vested interest in Kobayashi's seemingly reckless actions. Even further frustration comes in that any remaining proceeds, after debts are settled with creditors, will go into the pocket of Mark Karpeles, founder of Mt. Gox; in the eyes of the Bitcoin community and those affected by the Mt. Gox scandal, the result is unjust.