Frankfurt, Hesse, Germany - April 17, 2018: Many coins of various cryptocurrenciesFollowing the most recent price haggle between Fortress and Mt Gox, Fortress has further reduced its offer by 13% to takeover defunct Mt Gox claim compared to its July offer.
The New York-based private equity firm is offering $778 per coin to the creditors of the cryptocurrency exchange Mt Gox with an ultimatum of Dec 31 to accept the offer.
According to reports, the proposed amount equates 70 percent of MT Gox creditors account value.
In 2014, the company went bankrupt after it lost over 850,000 BTC, however, in 2018, Japanese courts changed the case from bankruptcy to a civil rehabilitation case.
This gave room for creditors to receive their missing bitcoin rather than its equivalent in cash which equated $566 at the time of the exchange’s collapse.
After Mt Gox 850,000 BTC loss in 2014, subsequently 200,000 BTC was found and are now held by a Tokyo court-appointed trustee.
Nevertheless, over the last few years, lawsuits have delayed the trustee’s distribution as investigations revealed the CEO of Mt Gox, Mark Karpelès when he left his position planned to sell his claim.
Many Mt Gox Legal scandals
In a move which is perceived to dilute and delay several years’ worth of petitions and crowd funded legal defences, Mt Gox creditor had partial victory.
Prior to the creditors’ victory, investigations revealed Mt Gox founder decided to sell his claim because of the ongoing legal battle with Coinlab and other detractors.
The company’s Legal coordinator said he thinks the Mt Gox settlement process could take years to finalize the case.
However, Karpelès was arrested in August 2015 by Japanese police and charged with fraud and embezzlement, and manipulating the Mt. Gox computer system to increase the amount in an account.
This charge was not related to the missing 650,000 bitcoins. After he was interrogated, Japanese prosecutors accused him of misappropriating ¥315M ($2.6M) in bitcoin deposited into their trading accounts by investors at Mt. Gox.
All these misappropriation charges into an account he controlled, were happenings approximately six months before the company failed in early 2014.
Victory! creditors get compensation eventually
The Tokyo District Court ruled to move the case to civil rehabilitation. This translated to Mt. Gox’s remaining Bitcoin holdings were to be distributed to investors in the form of Bitcoin.
Prior to the ruling, the exchange’s trustee Nobuaki Kobayashi had already liquidated tens of thousands of Mt. Gox’s BTC.
After depleting the reserves, rehabilitation proceedings are expected to dispense to each claimant $440 per Bitcoin in USD alongside other entitlements.
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