No Bitcoin Selloff in the Coming Weeks and Months

• Mt. Gox denied selling $10 billion in Bitcoin and Bitcoin Cash amid massive fund transfers.
• A blockchain expert assures that there will be no BTC sale soon and that distribution preparations are ongoing.

Mt. Gox has vehemently denied any transactions involving the about $10 billion sale of Bitcoin (BTC) and Bitcoin Cash (BCH). Reports claiming a large transfer of money from wallets connected to the notorious exchange prompted the denial.

Blockchain researcher Collin Brown shared that cryptocurrency expert Mark Karpelès reacted to the news by assuring the community that everything was okay. By relocating coins to other wallets, the trustee is getting ready for distribution. “No Bitcoin sales are planned for the near future.”

🚨 Mark Karpelès (@MagicalTux) updates on #MtGox: “As far as I know, everything is fine. The trustee is preparing for the distribution, moving coins to a different wallet. No imminent #Bitcoin sale.”

Don’t panic; everything is fine. Bullish momentum is building for more upside… pic.twitter.com/UdTTv51jod

— Collin Brown (@CollinBrownXRP) May 28, 2024

CoinMarketCap data shows that the price of BTC at the moment of writing is about $67,660.48, down 1.90% over the last 24 hours. This, together with the 4.21% fall over the previous seven days, indicated a bearish move.

Mt. Gox Denies Reports of a Bitcoin Selloff

Mt. Gox was once the biggest Bitcoin exchange in the world until its demise in 2014, and Nobuaki Kobayashi, the Rehabilitation Trustee, has been in charge of the lengthy rehabilitation process. The bankrupt exchange addressed the rising concerns in a letter dated May 28, 2024.

As they said, “The Rehabilitation Trustee is getting ready to reimburse the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated under the Rehabilitation Plan.” The letter made clearer still that rehabilitation creditors have two choices during the repayment process.

“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.”

The rehabilitation trustee also recognized the increased worry about the handling of these assets. The Rehabilitation Trustee has lately received questions or serious concerns regarding the state of bitcoin and bitcoin cash management, the paper said.

Affirmation of Secure Management

The exchange confirmed, debunking rumors, that “at this time, the Rehabilitation Trustee has neither sold bitcoin and bitcoin cash to make repayment in (ii) above nor made repayment in (i) above by way of Designated Cryptocurrency Exchange, etc. At this time, the Rehabilitation Trustee is securely handling bitcoin and bitcoin cash.

The denials from Mt. Gox were in reaction to reports from Wu Blockchain and Arkham Intelligence that showed significant Bitcoin and Bitcoin Cash movements.

Building on previous reports by CNF, 72 distinct Mt. Gox-linked wallets transferred a startling 141,686 BTC in the last seven hours, according to Arkham Intelligence. The transactions were done in batches of about 2,000 BTC each to a freshly made wallet called 1Jbez.

Significant Bitcoin Movements

In addition, this wallet—which saw its first modest transaction on May 20, 2024—now holds almost half of the $9.36 billion in attributed Mt. Gox Bitcoin.

As well, Arkham Intelligence reported that 1Jbez had already begun distributing Bitcoin, sending 4,000 BTC ($271.8 million) to 152w, a new wallet, in addition to smaller transfers to 1LsC and 18YB. For a more in-depth look at this development, watch the CNF video below.

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