In brief
- Creditors can claim up to 90% of the remaining Bitcoin from Mt. Gox, the Japanese exchange that famously declared bankruptcy in 2014, per Bloomberg.
- It’s part of an agreement between MGIFLP—part of Fortress Investment Group—and the Mt. Gox bankruptcy trustee.
- CoinLab, a former partner of the exchange, announced the arrangement but wasn’t involved in the settlement. The company will continue its own litigation.
Creditors can claim up to 90% of the remaining BTC from Mt. Gox, the Japanese Bitcoin exchange that famously declared bankruptcy in 2014, according to a new report from Bloomberg.
It’s part of an agreement between MGIFLP (part of Fortress Investment Group), and the Mt. Gox bankruptcy trustee, Nobuaki Kobayashi.
CoinLab announced the settlement, though it wasn’t a party to it. A sort of incubator for Bitcoin businesses that was once partnered with Mt. Gox, CoinLab initially sued the exchange for breach of contract back in 2013, before the bankruptcy, and is continuing its litigation.
Customers and investors have been scrambling to recoup their losses since Mt. Gox filed for bankruptcy in 2014, after a hacker stole around 850,000 of its Bitcoins.
Bloomberg reports that they’ll now be able to claim “as much as 90% of the remaining Bitcoin tied up in the bankruptcy,” though it’s unclear exactly how much is left, or how the approved claims will be priced—in the past, approved claims have dealt with Bitcoin priced at its 2014 value of $483 per coin.
The price of a single Bitcoin is now around $35,000.
The plan as agreed upon by MGIFLP and Kobayashi will need to be approved by creditors before the money starts flowing.
Investors can also opt out of these early payments, and wait for the many other lawsuits against Mt. Gox to settle.