Bitcoin Selloff: Mt. Gox Denies $10B BTC & Bitcoin Cash Sale

Highlights

Mt Gox has reportedly dumped more than $10 billion of Bitcoin and Bitcoin Cash.
However, the defunct exchange denied the selloff claims and affirmed that the BTC and BCH reserves were safe.
On the flip side, Arkham Intelligence reported that addresses related to Mt. Gox transferred over $9 billion of BTC to new wallets.

In a significant move that has generated widespread speculation within the crypto community, Mt. Gox has vehemently denied any selloff of Bitcoin (BTC) and Bitcoin Cash (BCH) worth approximately $10 billion. The denial comes in response to reports indicating a massive transfer of funds from wallets linked to the infamous exchange.

Mt. Gox Dismisses Claims Of Bitcoin Selloff

Mt. Gox, once the world’s largest Bitcoin exchange before its collapse in 2014, has been at the center of a lengthy rehabilitation process overseen by Nobuaki Kobayashi, the appointed Rehabilitation Trustee. In a letter dated May 28, 2024, the bankrupt exchange addressed the growing concerns,

They stated. “Under the Rehabilitation Plan, the Rehabilitation Trustee is preparing to make repayment for the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated.” The letter further clarified that the repayment process offers two options for rehabilitation creditors.

These options include “either (i) repayment by way of Designated Cryptocurrency Exchange, etc. receiving bitcoin and bitcoin cash on behalf of the rehabilitation creditors, or (ii) repayment with proceeds from the sale of bitcoin and bitcoin cash.”

Moreover, the rehabilitation trustee acknowledged the heightened anxiety surrounding the management of these assets. The document added, “Recently, the Rehabilitation Trustee has received inquiries/deep concerns about the status of managing bitcoin and bitcoin cash.”

To dispel rumors, the exchange affirmed, “at this time, the Rehabilitation Trustee has neither made repayment in (i) above by way of Designated Cryptocurrency Exchange, etc. nor sold bitcoin and bitcoin cash to make repayment in (ii) above. The Rehabilitation Trustee is currently managing bitcoin and bitcoin cash in a secure manner.”

Also Read: Mt. Gox Moves $3 Billion in Bitcoins to Unmarked Address, BTC Price Slips 2%

Reports Of BTC & BCH Sale Worth Over $10 Billion

The denials from Mt. Gox came in response to reports by Arkham Intelligence and Wu Blockchain that revealed substantial movements of Bitcoin and Bitcoin Cash. According to Arkham Intelligence, over the past seven hours, 72 different Mt. Gox-linked wallets transferred a staggering 141,686 BTC. The transactions were made in batches of approximately 2,000 BTC each to a newly created wallet identified as 1Jbez.

Moreover, this wallet, which received its first small transaction on May 20, 2024, currently holds nearly half of the attributed Mt. Gox BTC, valued at around $9.36 billion. Furthermore, Arkham Intelligence noted that 1Jbez has already started dispersing BTC, sending 4,000 BTC ($271.8 million) to another new wallet (152w), alongside smaller transfers to wallets 1LsC and 18YB.

In addition, these transactions sparked fears of a potential market selloff, exacerbating concerns within the crypto community. Adding to the intrigue, Wu Blockchain reported that Mt. Gox-related addresses also moved a total of 142,846.22 BCH to an unmarked address. The concerned address now holds approximately $67.9 million in Bitcoin Cash, making it the 11th largest BCH whale address.

Despite these reports, the Mt. Gox Rehabilitation Trustee’s assurances aim to mitigate panic and speculation. The letter emphasized that preparations for repayments are ongoing and urged stakeholders to remain patient. It stated, “As the Rehabilitation Trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made.”

Also Read: Just-In: Bitcoin Price Regains $70000, Memorial Day Rally In Play?

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