Mt Gox trustee has sold $230m in top cryptocurrencies since mid-March

September 26, 2018
Chris Wheal

The trustee dealing with the liquidation of assets on behalf of the bankrupt cryptocurrency exchange Mt Gox has sold a total $230m in bitcoin and bitcoin cash since mid March.

Mt Gox sells bitcoin for fiat currencies to set up trust

Attorney in the civil rehabilitation process of Mt Gox’s assets Nobuaki Kobayashi said in a notice filed on the defunct exchange’s website that more than $230m in bitcoin and bitcoin cash had been exchanged for fiat currencies between 18 March and the start of civil rehabilitation on 22 June.

Trust fund established

Explaining the move, the trustee said it was necessary to establish a trust for the claims made by creditors of the exchange. This is because some creditors requested that their holdings be repaid in fiat currencies, while other wanted their cryptocurrency holdings returned.

The trustee sold 24,658 bitcoin, worth Y22.5bn; and 25,331 bitcoin cash, worth Y3.4bn – a total consideration of just under Y26bn, or $230.1m.

Following the sale, the balance in the trustee account stood at approximately Y70bn, or about $620m, the trustee added.

While some have suggested the selling of cryptocurrencies during the Gox liquidation have been partially responsible for the weakening in digital currency prices since March, the trustees have stressed that the process had been undertaken in such as way as to have minimum impact on market prices.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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