Topic: MtGox Trustee Halts Bitcoin Sell-Offs (Read 390 times)

I'm beginning to think that the era that news like this would start influencing decisions of participants in the is gradually over because since last week when this broke, I was expecting an upward turn in the scheme of events concerning bitcoin price but unfortunately its reverse that its happening which further confirms that all the downward or upward trend associated with MtGox has been nothing but coincidences.

Creditors of the Mt Gox bankruptcy proceedings. We’re coordinating legal action to stop more than $2,000,000,000 surplus from going to the people responsible for the exchange when it was hacked, and instead have it shared among creditors who were victims of crime.

This is obviously good news. That Kobayashi bastard was dumping coins every X time and creating these big red candles. It was ridiculous enough to do it on some exchange (I think Kraken) instead of OTC as they should.

What is extra ridiculous is the fact that they had to dump the price first to realize creditors just wanted their BTC back, not their money in fiat, because that is unfair for both thet people that bought BTC way cheaper back then and now should be up big time, and unfair for current holders which have suffered this massive selloff. So first they crush the price and then they give them back their BTC, so stupid.

Anyway, until every last creditor has recovered their BTC I will not consider it a victory, but it's definitely better than the constant FUD of Kobayashi dumping another bunch of BTC.

Defunct Bitcoin exchange Mt. Gox has formally entered civil rehabilitation proceedings, officials announced June 22.

A statement and accompanying documentation confirm the move, which will see attorney Nobuaki Kobayashi act as civil rehabilitation trustee.

Kobayashi was responsible for selling vast tranches of Bitcoin reserves beginning Q4 last year to reimburse Mt. Gox users who lost money in the exchange’s mass hack in late 2013. The sell-offs appeared to have a conspicuous effect on markets, Bitcoin prices tumbling immediately following each transaction, which Kobayashi performed on major exchanges.

“The power and authority to administer and dispose of MTGOX’s assets is still vested exclusively in me, and I will implement the civil rehabilitation proceedings, including the administration of MTGOX’s assets and the investigation of claims, subject to the Tokyo District Court’s supervision,” Kobayashi wrote in the new documentation.

However, due to the bankruptcy proceedings now being halted as part of the civil rehabilitation, Kobayashi will not sell any further bitcoins, with users set to receive compensation in BTC instead of fiat currency as originally intended.

“...In the civil 2 rehabilitation proceedings in this matter, claims seeking a refund of Bitcoins (“Bitcoin Claims”) will also not be converted into monetary claims after the commencement of the civil rehabilitation proceedings,” Kobayashi continues.

Reacting to the news, a group of claimants who had established Mt. Gox Creditors lobby group out of dissatisfaction with progress considered it a mixed blessing.

“...Enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors of Mt.Gox in civil rehabilitation proceedings. This is the creditors’ victory,” a statement from the group reads.

“...However, this victory has not been realized yet. The victory will come to creditors when Mt. Gox makes payment to creditors and creditors actually receive such payment.”

Mt. Gox became infamous in the crypto industry after suffering a hack, followed by a collapse in 2014, resulting in the loss of $473 million worth of customers’ money - the single largest loss of funds in the history of crypto until this year’s $534 million Coincheck hack.