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This week Kolin Burges of the website âMtgoxprotest,â wrote an interesting new blog post called âWho will get our 200,000 bitcoins?â After attending a few creditors meetings, Burges is upset about the Mt Gox bankruptcy process, because when it finally comes to an end claimants will likely only receive $483 per BTC. Further Mt Gox victims are still uncertain about the bankruptcy trusteeâs plan, and no one truly knows when claimants will be paid due to issues with the American firm Coinlabâs lawsuit.
Also Read:Â Bitcoinâs Price Rise Brings Mt Gox Closer to Solvency
Mt Gox Claimants Who Held Bitcoin on the Exchange Will Likely Only Receive $483 per BTC
Kolin Burges of the website Mtgoxprotest.com.
The owner of the notorious website Mtgoxprotest.com is not too happy with the Mt Gox bankruptcy process taking place in Tokyo, Japan. According to the websiteâs founder Kolin Burges, some of the claimantâs lawyers were initially âupbeat about the prospects of the creditors receiving the full value from their sold 200k bitcoins.â However, Burges believes itâs likely Mt Gox administrators will sell the 200,000 bitcoins at full value and claimants will still only receive $483 per BTC. The remaining value would then possibly be passed on to shareholders like the exchangeâs parent company Tibanne. Â Â Â Â Â Â Â Â Â Â Â
âLiquidation is performed under corporate law rather than bankruptcy law, and the remaining money in the company would go to the shareholders,â explains Burges. âThey donât currently know of a way to avoid this situation â This is not good news.â
The Mt Gox Bankruptcy and Coinlab Complications
Moreover, the Mt Gox creditors situation is far more complicated because the company Coinlab had filed a lawsuit against Mt Gox for $75 million. Mark Karpeles the former CEO of Mt Gox has said the company, Coinlab, and its founder Peter Vessenes is making the bankruptcy process more difficult. Back in May, Karpeles talked about the Mt Gox bankruptcy possibly becoming solvent because of bitcoinâs meteoric price rise. At the time Karpeles said with Coinlab suing the company it really made the claims value around â59 percent.â
According to news.Bitcoin.comâs sources familiar with the matter, Coinlab doesnât want to settle and wants the case kicked back to the U.S. With a dragged out lawsuit it means it could be several years before any of settlement from the Mt Gox case is resolved. Back in 2012, the two firms made a deal giving Coinlab rights to handle the exchangeâs US and Canadian clients. Following the deal, Mt Gox did not hand over clients and databases to Coinlab because allegedly the company could not procure enough funds to get licensed in the U.S. and Canadian regions. In May of 2013, Coinlab sued Mt Gox for breaching the contract, and the lawsuit has been pending ever since.
The Goxdox II Leaks
The website Goxdox II contains compelling information against Coinlabâs lawsuit.
In addition to the lawsuit a website called âGoxdox IIâ details some compelling information against Peter Vessenes and Coinlabâs lawsuit. The website has quite a few posts that say Vessenes is the âMt Gox villain,â alongside disclosing revealing emails, a full list of non-depositor claimants, and more. Goxdox also confirms Coinlabâs partnership deal fell through because Vessenes couldnât get licensed and the lawsuit is the primary reason claimants wonât be paid for a very long time. Â
âPeter oversold his capabilities, couldnât get licensed, couldnât legally service US and Canada, and Mark decided not to cooperate,â explains the Goxdox post âEmail-Gate.â âPeter sued, hoping to at least get some settlement out of the $50M liquidated damages clause he negotiated for CoinLab.â
Those claims are the reason why Mt Gox creditors havenât yet been paid, have no idea when they will be repaid, and face a major dilution on their return.
Claimants Believe the Mt Gox Bankruptcy Distribution Process is Not Fair
Sources familiar with the matter also say that a vast majority of all the claims at Mt Gox have already been settled. Currently, there are two claimants who were not customers of the exchange; CoinLab and Tibanne (Mt Gox). Coinlab has filed a hefty claim towards Tibanneâs bankruptcy, and the trustee could use the gains from the sale to settle with Coinlab. Creditors will not have any say in this process unless they protest the settlement.
Our sources explain that many claimants are upset that fiat holders will get 100 percent back, shareholders will get a repayment, but customers who held BTC with Mt Gox will only get $483 per bitcoin. According to claimants, they are the main reason the trustee held the 200k BTC the entire time, and they believe the bankruptcy process is not giving a fair and equitable payout to everyone.
What do you think about the complications with the Mt Gox bankruptcy process and Coinlabâs lawsuit? Let us know what you think about this case in the comments below.
Images via MtGoxProtest, the LA Times, the website Goxdox II, and the Coinlab logo.Â
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