On Saturday, the 10th creditors’ meeting regarding the liquidation of Mt. Gox’s cryptocurrency holdings took place in Tokyo; putting controversial bankruptcy trustee, Nobuaki Kobayashi (also dubbed the ‘Mt Gox whale’) under the spotlight. Per the transcript of the Q&A-style hearing, Kobayashi’s responses thwarted conjecture from cynical pockets of the crypto-community who had been questioning the attorney-at-law’s moral integrity. Indeed, this all emerged after the Tokyo District Court’s March 7 report detailed the fact the Kobayashi recently sold $406.6 million (USD) worth of Bitcoin (BTC) and Bitcoin Cash (BCH); just some of Mt Gox’s holdings he is tasked with selling on behalf of creditors.

In answering creditors’ questions, the information provided by Kobayashi also had the effect of appeasing an anxious cryptocurrency market who all last week were left to speculate over the timing of the ‘Mt Gox whale’s’ next splash (if any), and whether it would again feature both BTC and BCH exclusively, or other Bitcoin hard forks too, like Bitcoin Gold (BTG) and Bitcoin Diamond (BCD).

Indeed, Saturday saw the bankruptcy trustee confirm the dates of his latest batch of Bitcoin and Bitcoin Cash selling was “from December 2017 to February 2018;” notably, a timeframe where BTC soared to record prices (~$20,000), before dramatically correcting to a low of ~$6,300.

Of course, the decision to sell such enormous volumes of BTC and BCH angered many cryptocurrency investors, especially given the fragile market’s already-bearish downtrend. Fortunately, creditors put this to Kobayashi on Saturday, asking for his reasons for selling, to which he replied:

Since the market price…can significantly change, it is difficult to determine whether the market price would rise or fall at a particular point of time. I determined the exact timing of sale following consultation with the court.”

Whilst many chastised Kobayashi for what appeared to be an unintelligent decision to unload his sell orders on to public crypto exchanges, Saturday’s report confirmed that this was not the case. Rather, the attorney-at-law sold “in a manner that would avoid affecting the market price.”

So as not to hinder “the future sale of BTC and [BCH],” Kobayashi “refrain[ed] from explaining the details of the method of sale,” except for the fact that it was “approved by the court.” 

As to when we can expect the next sell-off, the bankruptcy trustee shared that “at present, nothing has been determined,” but when/if it does, the decision will have followed “consultation with the court.”

A lot comes down to a pending court ruling that will determine whether Mt Gox can enter civil rehabilitation. Should the judge(s) approve, the holdings of Mt Gox could potentially be sent to creditors in their existing format (i.e., as cryptocurrency). This would relinquish Kobayashi of his duty of liquidising the defunct exchange’s virtual currency balances; a task that has seen him targeted by angry crypto-investors for allegedly accelerating the rate of falling market-wide prices. 

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