MT. Gox dumps 16,000 bitcoins

Bankrupt cryptocurrency exchange Mt Gox has moved 16,000 bitcoins from its secure wallets to an unknown destination, sparking concerns of an imminent price crash.

The Tokyo-based exchange went out of business in 2014 after losing an estimated 1 million of its customers bitcoins worth around $387 million at the time.

According to CryptoGround, which monitors Mt Gox’s remaining wallets, the bitcoins were removed from four separate addresses in increments of approximately 2,000, with 0 BTC remaining in each wallet that the funds were extracted from.

Mt Gox has previously offloaded around $500 million worth of bitcoin, with each sale usually being reflected by severe drops in cryptocurrency markets.

Some investors have taken to social media to quell fears of an imminent price crash, with some claiming that Mt Gox may have to wait for a court ruling before it is permitted to sell any more of its remaining funds.

Mt Gox trustee Nobuaki Kobayashi has previously claimed that the movement of cryptocurrency from the bankrupt exchange’s cold storage wallets did not affect the price.

“Following consultation with cryptocurrency experts, I sold BTC and BCH [bitcoin cash], not by an ordinary sale through the BTC/ BCH exchange, but in a manner that would avoid affecting the market price, while ensuring the security of the transaction to the extent possible,” Kobayashi said in March.

“Please refrain from analyzing the correlation between the sale of BTC and BCH by us and the market prices of BTC and BCH based on the assumption that the sale was made at the time the BTC and BCH were transferred… as such an assumption is incorrect.”

Founded in 2010, the exchange boasted around 80 percent of global trading volume at its height. Since Mt Gox’s closure, the exchange and its founder, Mark Karpeles, have been embroiled in legal battles, including class action lawsuits and embezzlement charges.

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