The digital detective who has been chasing Mentougou for four years: The huge amount of BTC compensation may cause the market to collapse completely

The huge compensation paid by Mentougou will soon reach the hands of creditors, and the selling pressure in the Bitcoin market has returned.

According to The Telegraph, after continuing to track the Mentougou theft case four years ago, cyber detective Kim Nilsson pointed out that the huge compensation will likely "completely destroy" the Bitcoin market after it takes effect.

Currently, there are 160,000 bitcoins in the Mt.Gox wallet waiting to be paid, and the subsequent sell-off could reach $1 billion. Nilsson believes that the lack of market buyers will further exacerbate the recent downward trend in the crypto market.

As mentioned in Xiaocong’s previous article, on August 23, Mt.Gox trustee Nobuaki Kobayashi issued a notice stating that the company has opened an online claims system through which creditors can claim for funds lost when the exchange went bankrupt in 2014.

On September 12, Mt.Gox’s official website issued another announcement, expanding the online claims system to corporate users.

Cointelegraph called the Mentougou theft a "huge, infamous" scandal, saying that before the Coincheck hack this year (involving $534 million), no other incident had caused the same level of shock to the cryptocurrency community. Before the civil restoration process was initiated, Kobayashi Nobuaki himself was dubbed the "Tokyo Whale" for a series of Bitcoin sales.

According to statistics from the website, 85,000 bitcoins were lost in the Mentougou incident, totaling US$460 million at the market price at the time, and about 24,000 users suffered losses.

Nilsson, who made a pessimistic prediction about the Bitcoin market, was once a software engineer and one of the victims of the Bitcoin theft. The Wall Street Journal said that after Mt. Gox was hacked, Nilsson has been committed to developing a program to index the blockchain, tracing the input, output and address of each transaction, hoping to identify the hacker's true identity.

Nilsson has been working on blockchain archaeology for four years. In 2016, he successfully helped IRS investigators identify a Russian suspect who was subsequently arrested by US authorities.