The founder of CryptoQuant has revealed on his X platform the recent removal of 47,000 bitcoins from Mt. Gox’s accounts in a series of events that have rocked the cryptocurrency community. Simultaneously, Bitwise Asset Management is being sued for allegedly engaging in fraudulent activity.
Ki Young Ju, the creator of CryptoQuant, has offered a thorough analysis of the recent 47,000 bitcoins transferred from wallets connected to the now-defunct Mt. Gox exchange. In an ongoing attempt to pay off the exchange’s debt, 47,000 bitcoins—worth over $1.4 billion at the current market value—were recently moved.
In a recent interview, he declared, “This is not a reason for alarm.” The trustee has been collecting money for debt payments by occasionally selling bitcoins. Amid popular economist Alex Krüger’s analysis, Ki Young Ju is optimistic that the market still has room to absorb the leftover BTC from the German government, preventing an impending long-term market crash.
Market Watchers Speak on Investor Confidence, Bitwise Sued For Fraud
Market watchers think investor confidence is maintained mainly throughout such occurrences because of the transparency professionals offer, such as Ki Young Ju. According to the lawsuit, Bitwise misled investors about the characteristics and performance of its funds, which may have resulted in large losses.
The plaintiffs contend that Bitwise omitted material information about dangers and operational problems while exaggerating the safety and profitability of its investments. Alex Krüger commented that German police were in custody of 50,000 BTC until the end of June. These assets have been on sale with a slight increase in price from June 19.
The police account had moved 16,038 BTC valued at approximately $910 million to different brokers and exchanges. This major transaction was the reason behind the 3.5% drop in the price of BTC, cutting off approximately $2,000 from each BTC.
CryptoQuant Boss Says Using OTC Transfer Wrong, States Implications
In his latest post on X, Ki Young Ju listed three likely situations that may cause Mt. Gox’s ongoing Bitcoin transactions not to affect the Bitcoin market price. He regretted that this transaction would have been an internal transfer procedure, considering the company’s strategy of constantly switching over to multiple wallets for security concerns.
Young Ju said that the transaction couldn’t have been an Over-The-Counter (OTC) arrangement, as trades like this are designed not to affect the cryptocurrency market price. This may be feasible considering the size of Mt. Gox’s Bitcoin holdings and the cooperation of exchanges that facilitate the repayment procedure without having a solid impact on the cryptocurrency market.
Ki Young Ju stated that transferring these funds is a standard procedure in the liquidation process. Young Ju also added that the involvement of an OTC trade proves the market is good to go. This proves that Mt. Gox’s sales will likely be fine with the market. Mr. Young acknowledged that 1,500 BTC is a small amount to cause a market stir, thereby explaining the stagnancy in the trading volume after the Mt. Gox transaction.
Young Ju Makes More Revelations, Says Bitbank Received 1,500 BTC
Young Ju also suggested that Mt. Gox could have leveraged a broker’s service after finalizing its sales because the Bitcoins didn’t scale through the broker’s exchange or cryptocurrency wallet. The CryptoQuant founder also mentioned that Bitbank received 1,500 BTC without a major increase in trading volume.
He noted that a total of 94,000 BTC would be up for sale if the services of a brokerage were employed. Young Ju appeared confident that this may be the case, insisting that acquiring BTC assets like this is complex without some on-chain movement.
Arkham Intelligence, a popular on-chain analytics platform, disclosed that Germany had sent more than 13,000 units of BTC to different makers and cryptocurrency exchanges on July 8. The major exchanges include Bitstamp, Coinbase, and Kraken. Meanwhile, the German government still possesses more than 27,000 BTC, valued at $1.57 billion.
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