Recently, Goxdox (on behalf of Mt. Gox creditors who posted court information) published details about the Mt. Gox incident and said “no one wants you to know” information. According to Goxdox, the bank records of Mt. Gox custodian Nobuaki Kobayashi show that he sold a lot of bitcoin and BCH through Bitpoint. The cryptocurrency was transferred to the traditional trading platform for sale, which is exactly the opposite of what Kobayashi said earlier.
A large amount of cryptocurrency is sold through traditional exchanges
Last year, many people in the market we’re talking about the custodian of Mt. Gox and the possibility of selling a lot of bitcoin. The public was told that this situation could be avoided, and Kobayashi himself said that he would listen to the experts and try to sell the cryptocurrencies in OTC markets in a way that does not affect the market.
Last March, Kobayashi said:
“I did sell Bitcoin and BCH, but it was not done through a cryptocurrency exchange, but in a way that avoids affecting the market.”
However, Goxdox revealed that there has never been a related private auction. And the cryptocurrency community noticed that the custodian’s withdrawal time coincided with the bitcoin fall time in January and February, respectively.
The Goxdox report goes on stating:
“Unless Bitpoint is being really generous, we’d wager the reason they are depositing billions JPY into the trustee’s bank account is because they were hired to sell the Mt. Gox Estate’s BTC/BCH.”
Bitpoint’s sell orders affect market prices
To illustrate what these numbers mean, Goxdox looks at the various entries in the bank’s records, showing that their yen balance has grown since Bitpoint remitted the initial funds to the custodian’s account. The deposit record shows that in addition to the initial funds, an additional amount of funds ($312.4 million) has entered the account.
MtGox Custodian Account Record, Image Source: Goxdox
Unfortunately, the record before February 23 last year was not announced, but the remittance information obtained by Goxdox showed that the custodian received 8.3 billion yen from Bitpoint.
“The May entries give us what we are looking for — The trustee received 22 wires between May 1 and June 4 and the bank book entries show Bitpoint sold roughly ¥24 billion JPY worth of BTC/BCH during that period,”
Goxdox believes that Bitpoint frequently remits money to custodians to prevent security risks.
“The new data from the trustee’s bank book coupled with BTC’s price declines in May/June 2018 indicate that the method Bitpoint used to conduct the sale affected price discovery — In other words, Bitpoint sold on an exchange and not OTC.”