More NewsMt. Gox Stakeholders to Attempt Reviving Exchange

Mt. Gox Stakeholders to Attempt Reviving Exchange

US and Canadian customers of Mt. Gox, the Tokyo-based exchange for digital currency bitcoin that filed for bankruptcy in late February, have agreed to settle their proposed class action lawsuits that alleged the company defrauded them.

In return for settling separate class actions, they agreed to a plan by which they will share in a 16.5% stake after Mt. Gox is sold to Sunlot Holdings, a firm backed by entrepreneur Brock Pierce and venture capitalist William Quigley.

Once the world’s biggest bitcoin exchange Mt. Gox filed for bankruptcy in Japan and the US after reporting that it had lost around 850,000 bitcoins – worth more than US$400m – in a hacking attack. Later, it announced that around 200,000 of the missing bitcoins had been retrieved.

However, the exchange is still expected to be liquidated after the Tokyo District Court agreed to the company’s request to abandon plans to revive the business.

The court named lawyer Nobuaki Kobayashi as the bankruptcy trustee to oversee the process. The creditors and the buyout group now hope that their deal will halt the liquidation proceedings.

According to the Sunlot consortium, liquidation would result in a much smaller recovery value for creditors than its alternative plan plan to revive the exchange and share trading profits with those former exchange customers.

John Betts, Sunlot’s chief executive officer (CEO), said the bid is aimed not only at improving the outcome for those creditors but also sends a message that the “bitcoin community looks after its own.”

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

6m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha