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Kraken CEO Speaks Out on Mt. Gox Sell-off

Mt. Gox’s trustee, Nobuaki Kobayashi has allegedly sold a massive sum of BTC (Bitcoin) and BCH (Bitcoin Cash) on BitPoint (a licensed cryptocurrency exchange based in Japan) and the information was later confirmed that Kobayashi sold coins to repay creditors.

The compensation process for those users who had lost their funds throughout the massive hack in Mt. Gox back in 2014 has been long and troubled with the dispute. During the late 2017 and the first half of 2018, alleged sell-offs from Kobayashi were rumored to be influencing Bitcoin’s price because of their magnitude. The Bitcoin prices dropped as low as $6000 when Kobayashi began to panic and started to sell $400 million worth of BTC. According to the reports from numerous sources as of March 7, he has sold over 35,000 Bitcoins and 34,000 Bitcoin Cash. The transactions transpired through an exchange, per every individual sale appearing to move BTC markets lower.

This was confirmed by Mark Karpeles (former CEO of MT. Gox) he said that the transfer occurred from December to February. Kobayashi already transferred 18,000 Bitcoin Cash approximately $180 million the day before Feb. 6 when the BTC/USD hit $5900. Kobayashi and an accomplice probably wanted to use the conventional sales channels from the beginning. Subsequently, Nobuaki Kobayashi linked the selling practices at a creditors’ meeting on the same day.

Conferring to the continuing Mt. Gox FBI investigation this week, the BBC raises suspicion on a suspected “Shell” company in London that it may have assisted in laundering the exchange’s embezzled BTC.

The CEO of United States exchange Kraken, Jesse Powell formerly stated that his platform has obtained a request regarding the ways and means of large scale trade. Nonetheless, Powell implied that Kraken’s ideas for selling coins in a public sale with an

OTC broker was not taken into action. The overall amount involved in the disclosed documents is just less than 35 billion yen or $318.5 million.

More disclosures from the reimbursement development appeared, CoinLab, a previous business partner of the exchange, filed a 1.7 trillion JPY (Japanese yen) or $16 billion entitlement against Mt. Gox. This incident caused a commotion in the community stating that the claim by Coinlab is baseless.

Kraken CEO Jesse Powell apparently stated that he is baffled to hear that the lawsuit is accountable for holding up payouts and that the verdict for Coinlab would be treated in the pace of the depositor victims. He also added that he thinks that the people are having a hard time understanding the $75million and that when it’s over, Coinlab will be implicated for the shortage of client deposits.

Mark Karpeles (former CEO of Mt. Gox) has declared that he is not guilty in the concluding argument for his trial in December last year. Hence, in the month prior to the occurrence, Kobayashi proclaimed that he is creating efforts to prolong the time limit for filing civil rehabilitation claims. The estate is also trying to reclaim the money that was thought to be owed to Mt. Gox by other parties, including CEO Mark Karpeles and Tibanne Co. Mt. Gox’s majority owner. It is still unclear how Kobayashi will allocate the assets to the creditors once the payouts will begin. The biggest concern of it all is that the Gox’s resources are not enough to deal with the approved claims for Bitcoin (BTC) and Bitcoin Cash (BCH) as well as the Fiat currency to take care of recent appraisals in pro-rata cryptocurrency.

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A pioneer in the consensus industry offering the tools to democratize access to finance and aiming to reengineer the future of capital markets.

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