Bitcoin Price drops after Tokyo Lawyer Sells over $400 Million

Bitcoin Price Goes Down – Mt. Gox Trustee Responsible

UK “Shell” Company Linked to Bitcoin Laundering

Tokyo lawyer and trustee for Mt. Gox has disclosed the sale over $400 million in Bitcoin and Bitcoin cash since September 2017. Not a typical whale himself, but Nobuaki Kobayashi is obviously a recognized brand and name within crypto-world. It is speculated that Kobayashi has another $1.9 billion to offload.

In his announcement, Kobayashi wrote the decision to sell the cryptocurrencies followed a consultation with the court as he sets out to reimburse Mt. Gox’s creditors. He also noted that it was “necessary and reasonable” to sell a portion of bitcoin and bitcoin cash since the 9th creditors’ meeting on September 27th, in order to “secure a certain amount of money for distribution resources.”

He then added that he made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of the sale. This claim was brought into questioning as it was reported that Mr. Kobayashi also sold BTC during its lowest point.

Second story linked to Mt. Gox collapse as BBC reported that a UK company has been linked to the laundering of 650,000 stolen bitcoins worth £4.5 billion (US$6.26 bn). The coins were taken by hackers from Tokyo-based Bitcoin exchange Mt. Gox, leaving tens of thousands of customers out of pocket. It’s not clear who is in control of the London-based firm Always Efficient LLP.

Japan Victim to More Than 30 Cases of Crypto-Frauds

Just for reminder, back in 2014, the Japan-based bitcoin exchange Mt. Gox collapsed, resulting in the loss of hundreds of millions of dollars in customers’ funds (today’s value $3.3 billion). Japanese lawmakers have previously cited the exchange’s failure as a key driver in the move to regulate the cryptocurrency industry. Only in the first seven months in the 2017, Japan had fallen victim to 33 cases of cryptocurrency fraud worth over $700,000.

Bitcoin Price drops after Tokyo Lawyer Sells over $400 MillionAs the source of regulated cryptocurrency market, Japan is dealing with issues since the beginning of last year. We already covered a group of cryptocurrency traders who are filing a lawsuit against Coincheck Inc.  over the recent theft of $530 million in digital money from the Tokyo-based exchange that happened.

The total number of ten traders filed the claim at the Tokyo District Court over Coincheck’s freezing of cryptocurrency withdrawals.

Coincheck Inc. users also withdrew 40.1 billion yen ($373 million) from the cryptocurrency exchange, the first day customers were allowed to pull out and that triggered the exodus of money. Chief Operating Officer Yusuke Otsuka is still saying that they will compensate users but he didn’t want to explain the root causes of the heist.

Japan’s financial regulator plans to slap administrative punishment notices on several cryptocurrency exchanges and is forcing some to suspend their business. The Financial Services Agency may also consider Coincheck, one of 16 operators of virtual currency exchanges awaiting regulatory approval. Another 16 have already won approval under Japan’s law requiring exchange operators to register.

This exact move would be the second such order given by regulators to Coincheck since the hack in late January, which was one of the largest.

Bitcoin price was, at the time of writing, still falling for 8.79% to $9,826.54.

Teuta Franjkovic

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