TL;DR: GoxDox website is back after a hiatus, and issued what it believes is definite proof the trustee, Nobuaki Kobayashi, handling dismantle of Mt. Gox’s bankruptcy, has been dumping tens of thousands of bitcoin core (BTC) and bitcoin cash (BCH) onto the market through BitPoint, causing prices to dip in 2018 significantly each time.
Gox Trustee Used BitPoint to Dump Bitcoin Onto Market
“After a five year hiatus we are BACK with new GoxDox to give you the details no one wants you to know,” the site claimed. It’s a page previously known for keeping pressure on the failed exchange, Mt Gox, after it went belly-up due to incompetence and a hack. The site’s goal seems to be making sure creditors and victims have as much information as those deciding who gets paid and when. Their post also comes as some creditors attempt to slow the process of repayment entirely, as CoinSpice recently reported.
GoxDox was able to somehow get a look at the trustee’s bank statements. “We can’t yet be 100% certain how the so-called ‘Dumpening’ of 35,000 and then 25,000 BTC/BCH was conducted,” the site explained. “But we’ll reveal to a 100% certainty the other half of what MtGox trustee Nobuaki Kobayashi doesn’t want you to know —the identity of the party who conducted the sale.”
Warned by the likes of Kraken founder and CEO Jesse Powell not to just fling an abundant of supply onto markets, out of fear of artificially manipulating prices, evidently “the trustee decided to (1) sell, (2) not tell us how he sold, and (3) hire a different so-called ‘cryptocurrency expert’ to sell the BTC/BCH,” ignoring Powell’s advice. The results, GoxDox believes, have been nothing short of disastrous.
Trustee Didn’t Want to Get Goxxed
Without an auction, where value might be better arrived at by those familiar with the tech and crypto economics, it appears the trustee merely sold tens of thousands of BTC and BCH through BitPoint. There’s enough anecdotal evidence to make a compelling case, and, if so, economic theory basically suggests when there is more supply, especially suddenly, than demand, prices decline.
Trustee bank statements obtained by the site appear to show massive deposits made from BitPoint into Gox estate accounts. Gox balances are regularly increased, adding “an additional ¥34,346,581,104 JPY to the opening balance,” revealing something of a pattern, a relationship between BitPoint and the trustee. The documents do not cover all the accounts’ activity over that early part of 2018, and the site admits as much.
By May of last year, however, “The trustee received 22 wires between May 1 and June 4. The bank book entries show BitPoint sold roughly ¥24 billion JPY worth of BTC/BCH during that period,” GoxDox noted. They also believe the volume of wires from BitPoint in Japanese fiat were, ironically, “to prevent counter-party risk. A hack at BitPoint could expose the MtGox Estate to a loss and the trustee didn’t want to get Goxxed,” they teased.
Price Discovery Thwarted
They find what they contend are correlations interesting enough to be outright causation. “The new data from the trustee’s bank book” the site managed to get, “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.”
April, for example, saw a robust rise in BTC price. Coincidentally, or worse, there is no record of BitPoint activity in the previous regard. In months just after, as BitPoint returned, “bearish market sentiment dominated after a month of heavy selling by BitPoint. It’s hard not to reach the conclusion that the sale of ¥26 billion JPY worth of BTC/BCH affected the BTC/BCH price during May 2018. BitPoint dumped on the market,” the site contends.
It is from such activity they’ve gone on to surmise exactly this circumstance happened during the first months of 2018 for which they lack sure-fire proof. The site urges all creditors to demand the trustee and BitPoint open their books and methods to at least prevent similar disasters in the future.
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