Bitcoin [BTC] has struggled to maintain the $20k mark on Aug. 27 as unconfirmed rumors of Mt. Gox dumping $140k BTC have sparked a massive sell-off.
Crypto Twitter is rife with doomsday predictions that Bitcoin will fall back in the range of $10-$12k. Some pointed out that the release would coincide with unlocking the post-merge staked eth.
“They just want to maximize the chaos,” one of those tweets claimed.
The now-defunct Mt. Gox abruptly suspended all trading in 2014 after losing $460 million to hackers and another $27.4 million missing from its bank accounts.
Following a lengthy legal procedure, the stolen funds were subsequently recovered from the exchange, and the appointed rehabilitation trustee, Nobuaki Kobayashi, announced on July 6 that he was ‘preparing to make repayments to creditors.”
The report went on to say that “in the documentation at the time, Kobayashi gave ‘the end of August as a reference period during which some initial payments might begin:
“Following discussions with the Court and in accordance with the Rehabilitation Plan, the Rehabilitation Trustee plans to set the Assignment, etc. Restriction Reference Period from approximately the end of August this year until all or part of the repayments made as initial repayments is completed for safe and secure Repayments.“
Mt. Gox Creditors Say No Bitcoin Dumping
And soon rumors began to float on Twitter that 137,000 Mt. Gox bitcoins would be released on August 28. However, several users who claim to be creditors of Mt.Gox chose to dispel the banters of the supposed dump.
One of them tweeted that they don’t have any intention of selling BTC and cautioned against believing in ‘influencers’ on Twitter.
Creditor Eric Wall, also took to Twitter to disband the unfounded claims and explained why Bitcoin investors should be ignoring this rumor and blocking all those on Twitter who are spreading it:
Another Twitter user said that those FUDs are being spread to maximize social engagement.
“Apparently, the 140,000 Mt. Gox Bitcoin coins are NOT being released tomorrow. These are rumors being repeated by large accounts for engagement with no actual factual basis. I looked for a source to verify these claims and there isn’t one”, he said.