Cryptocurrencies fall because Mt. Gox moves 8,000 BTC and 6,000 BCH out of their cold storage. Upbit’s computers were seized by investigators and police because there is suspicion that they may have falsified their balance sheets to deceive investors.
The Mt. Gox Trustee is once again transferring Bitcoin and Bitcoin Cash out of cold storage. It has been confirmed by CryptoGround, via www.blockchain.info, that about 8,000 BTC and about 6,000 BCH has been transferred out in 7 separate transactions, each transaction totals 2,000 BTC or BCH. It is not known if the trustee is selling these coins or just moving them. But if he is selling them, hopefully, it is on an ‘over the counter market’ so it will not disrupt the market any further. The trustee has been active lately, with the most recent sell-off at the end of April 2018.
The western world woke up to news that South Korea’s largest crypto exchange, Upbit, is being investigated for potential fraud by police and 10 investigators sent by South Korea’s Financial Supervisory Commission (FSC). They are looking for fraud surrounding coin listings because the police believe Upbit has falsified its balance sheet in order to deceive investors. The investigators seized Upbit’s computer system in order to properly audit them and ensure they accurately reported their holdings.
At the time of writing, the total market cap has fallen from about $440 billion to about $393 billion and the price of Bitcoin has fallen from about $9,300 to about $8,600. While it is not clear if the Mt. Gox sell-off and Upbit investigation were the only reasons the market has dipped, they are definitely big factors.
Did either of these issues cause you to sell? Or are you still hodling stong? Comment below!