137,000 Bitcoins could be sold today and send Bitcoin to zero!

Eric Wall, former CIO of Oslo-based crypto-currency investment firm Arcane Assets AS, has responded to recent rumors that Nobuaki Kobayashi, Mt. Gox’s rehab trustee, is ready to put $137,000BTC on the market on Sunday (August 28).

As you can imagine, this type of rumor has not helped the crypto market and in particular, the price of bitcoin, this weekend.

As Cointelegraph reported earlier today, “Mt. Gox imploded with hundreds of thousands of bitcoins nearly a decade ago” and “following a lengthy legal process dealing with funds later recovered from the stock exchange, the appointed rehabilitation trustee, Nobuaki Kobayashi, announced on July 6 that he was “preparing to make repayments” to creditors.“

The report goes on to say that “in the documentation at the time, Kobayashi gave ‘the end of August’ as the reference period in which some initial payments could begin” :

“Following discussions with the Court and pursuant to the Rehabilitation Plan, the Rehabilitation Trustee plans to establish the Assignment Reference Period, etc. Restriction reference period from approximately the end of August of this year until all or part of the repayments made as initial repayments are completed for safe and secure repayments.“

One of the people claiming today that 137,000 Mt. Gox will be released on August 28 is crypto-currency investor and analyst Miles Deutscher :

Well, a few hours later, Eric Wall, who claims to be one of Mt. Gox’s creditors, explained why bitcoin traders should ignore this rumor and block anyone who spreads it on Twitter:

PSA: MtGox is *NOT* distributing any coins this week, or the next week, or the week after that.

Source: I’m a MtGox creditor. The repayment system is not live yet.

Next step: Go and block @TheAltcoinHub for spreading this misinfo.

– Eric Wall (also supports X 🏴) (@ercwl) August 27, 2022

Eric Wall continues:

“As it stands, you can’t even register where (which exchange) you want your BTC and BCH to be sent yet. Payments will also be made in installments. Yes, some people have chosen to sell their rights to Fortress. No, there is no official schedule… Also: I am not selling. Why not? I don’t know, prices don’t seem very attractive to sell at this time, I’d rather buy here than sell. Please provide links to the major accounts that are spreading this false information…“

Of course, even if Deutscher is right and 137K bitcoins are returned to Mt. Gox. creditors on Aug. 28, that doesn’t mean the price of $BTC will immediately crash because of it, as crypto analyst Josh Rager explained today:

MT GOX release probably creating more fear than needed

140k BTC = $2.8B

BTC daily trade volume $20B to $30B

These BTC aren’t going to be all sold at once https://t.co/ZLBh0HVIgs

– Rager 📈 (@Rager) August 27, 2022