Fortress Investment Group Wants To Buy Mt Gox Creditor Claims for $900 Per BTC
If you are participating in the crypto market for years, you have probably heard of the time in which Mt Gox, the largest crypto exchange at the time, was hacked and collapsed. This happened back in 2014 and 850,000 BTC was stolen from the servers. This led to bankruptcy and people who are waiting for their Bitcoin until today.
Now, the Fortress Investment Group is set to “help” these people by buying their claims. Each BTC lost can be sold by the incredible price of $900 USD. That’s right, you sell your rights to the BTC you once had and you get less than 10% of the value of an actual Bitcoin.
The announcement was made by the managing director of the firm, Michael Hourigan. According to him, this is an investment for the company and people would receive the money by accepting the proposal instead of ever receiving their BTC.
At the time that the exchange collapse, BTC was only worth $451 USD, so the company affirmed that they are offering 200% of the “bankruptcy value” of the asset. If someone decides to sell, it can sell the assets paying for BTC or any fiat currency and payment is made in 10 business days.
Hourigan affirms that this price is “fair for both sides”, despite being only around 7% of what an actual BTC is worth at the time of this report. While this seems like a plain bad investment, many people are bound to take it, mostly out of desperation for not being able to get their money for six years, but the price is far from fair.
Fortress And The Bitcoin Market
Fortress has been around for a while and its interests in the crypto market date before the fall of Mt Gox. The company has planned to launch a BTC investment fund back in 2013, what never actually happened. Last year, the company bought $20 million USD in BTC.
Michael Novogratz, a famous figure in the crypto market and the CEO of Galaxy Digital, known as a crypto merchant bank, was a former CIO of the company, which shows how close its ties with the crypto market are.
Back in 2017, the company was acquired by SoftBank, but it seems that this has not changed the situation so much. Not only SoftBank has invested in the crypto market before, but it also seems that Fortress has retained full control of its activities after the acquisition.