Mt Gox creditors have received a new offer to sell their claims to Fortress Investment Group. Victims of this now bankrupt crypto exchange may be able recoup close to 88% of their initial capital as per the latest offer.
Back in 2014, Mt Gox reported a loss of over $450 million worth of BTC which marked the biggest hack in crypto to date. Since then it has been on a downward spiral, Mt Gox, their stakeholders and creditors moving to the Japanese courts. The crypto exchange was eventually placed under civil rehabilitation in June, 2018.
The New Offer to buyout Mt Gox Creditors
Fortress’ interest in Mt Gox might be a reprieve for the 56 creditors who moved to a Japan court last year seeking for their claims to assessed and paid out. The investments’ group offered to buy every BTC at $1,300; roughly 88% of the account value based on the estimated stats as of the attack in 2014. Previous offers made by Fortress to Mt Gox have to date been declined; these offers were however lower than the latest. The very first one was at $755 per BTC which later dropped to $600 and now at an attractive $1,300 being that was the price of BTC when the hack occurred.
It is still uncertain whether Mt Gox will accept the 88% deal; the company’s founder, Mark Karpeles is currently in prison which leaves the business being conducted by the court appointed trustee, Nobuaki Kobayashi. They were mandated to process creditors’ claims but have yet to accomplish this goal given the legal and liquidity constraints. Mt Gox which facilitated around 70% of the BTC trade during its peak was only left with 141,000 Bitcoins after it was hacked.
Michael Hourigan, the Fortress Investment Group MD, has since convinced Mt Gox creditors to sell off their claims in order to recover some of the funds back. The Managing Director also noted that the discounted price offer made sense given the legal and financial risk attributed; it could take as long as 5 years for this litigation to be sorted out.