Reviving Mt. Gox And Repaying Victims’ Bitcoin – Part 2
Continuing from the previous post, here are the details about Mt.Gox. They are sure to enchant you with the revival process pioneered by Pierce.
The Supposed Villain
It has been going on for quite a few times that Sunlot has been trying to take over the rehabilitation proceedings as the arrangement was derailed by a lawsuit from CoinLab. The company partnered with Mt.Gox in 2012 where it was to turn its North American operations claiming it never received the necessary assets and therefore sued Mt. Gox for $ 75 million. On this background, the Mt.Gox countersued saying CoinLab wasn’t legally certified to run the cryptocurrency exchange in the US saying it hadn’t returned $ 5.3million in customer deposits
It was later on that the CoinLab co-founder Peter Vessenes has increased the claim whereby he is now seeking $ 16billion alleging there is a frivolous lawsuit claiming if it hadn’t been canceled, CoinLab would have been Coinbase and suing for all the value believing Coinbase worth $ 16 billion as he should be paid $ 16 billion. Embezzling money from Mt. Gox, committing a crime as well as trying to extort the creditors, he is accused of holding up the entire process hoping he’ll get a payday. While further on Pierce reiterated that CoinLab is the villain trying to take all the money seeing creditors get nothing.
In this case, the Mt.Gox customers were worried that they might only receive the cash that is equivalent to their Bitcoin as according to the currency’s $ 483 value the Gox closed in 2014. Despite all this, the rise in bitcoin’s value was rising to around 7X and as high as 40 X at the currency’s peak. All these were later seen as the Japanese district court halted bankruptcy proceedings sending Mt. Gox into civil rehabilitation meaning the company’s assets were distributed to the creditors instead of liquidated declaring users are paid back their lost Bitcoin rather than the old cash value.
The Plan For Gox Rising
With Pierce and Sunlot attempting another rescue, the Mt.Gox’s $1.2 billion assets were tracked down to remaining cryptocurrency where that’s missing having it all fairly valued distributing the maximum amount to those of the robbed users along with Mt.Gox equity shareholders which were including himself receiving nothing.
Being a much better deal for creditors more than if Mt.Gox paid out the undervalued sum, then shareholders like Pierce got to keep remaining bitcoins or proceeds of the sale at today’s true value. While seeking this to happen Sunlot requires more or less at least half of those Mt. Gox users seeking compensation or roughly 12,000 thereby representing the majority of assets signing up to join a creditors committee where GoxRising.com comes in. The plan, in reality, is having users join the committee where they are so they can present a united voice to Kobayashi about how they want Mt.Gox’s assets distributed. As Pierce says he would allow the process to move faster than it would otherwise as things are on track to be resolved in the next three to five years with a majority of creditors signing on this as to be resolved in 1 year.
Pierce wants to create a Gox Coin giving original Mt. Gox creditors a stake in the new company beyond providing whatever the Mt.Gox estate pays out. Planning to have all of Mt. Gox’s equity to be wiped out, it includes his own. While he is arranging to finance and tokenize an independent foundation governed by creditors, they are sure to seek recovery of additional lost Mt.Gox assets thereby distributing them pro-rata to the GOX Coin holders. This makes them plenty of unanswered questions about the regulatory status of a Gox Coin with holders wanting to be entitled to, Pierce admits.
Wrapping Up The Discussion
In the midst of all these Pierce is bidding to buy the intangibles of Mt. Gox aka the brand and domain, wanting to then relaunch it as a Gox or Mt. Gox exchange that doesn’t provide custody of itself for higher security despite the crypto recession with prices at multi-year lows. He also believes there’s still room for another exchange along with a brand tied to the early heyday of Bitcoin.
Pierce adds that he wanted to offer creditors more than the bankruptcy trustee that can do its own where he concedes the venture isn’t purely altruistic as the exchange is very successful standing to benefit sometime down the road as also even if revived, the Mt.Gox will never rise to legitimately challenge Binance, Coinbase as well as other leading exchanges. Believing it’s all worth the effort, Pierce concludes whether they are successful or not, they want to see the creditors made whole where they will have to decide for themselves who to trust.