Mt. Gox Saga Continues: CoinLabs Make Deal with Trustee
The estate only has 0.23 BTC to give out for each BTC that is locked up in bankruptcy with a claim on it.
After several repeats of the postponement of the Mt. Gox rehabilitation plan deadline, the latest development in this more than the seven-year-old case is CoinLab Inc. coming to an agreement with Nobuaki Kobayashi, the trustee to Mt. Gox bankruptcy, and MGIFLP, a unit of Fortress Investment Group LLC.
As per this agreement, creditors will get the chance to get access to as much as 90% of the remaining Bitcoin lost on the Japanese exchange in 2014.
However, the plan needs to be approved by creditors, said Coinlab in a statement on Friday, adding that investors aren’t obligated to take the early payment and can wait for the lawsuit to settle.
A total of 850,000 BTC belonging to thousands of customers were lost. Since then, the coins that have been found are facing a long and tedious process of reimbursement with no results yet.
According to a CoinLab spokesman, for each BTC locked up in bankruptcy with a claim on it, the estate only has 0.23 BTC to give out. Coinlab’s deal would pay investors from the trust.
Founded in 2012, CoinLab has a $16 billion claim against Mt. Gox. As per the statement, the company is not part of the settlement and will continue its litigation.
“I am thrilled that people are finally getting paid by Mt. Gox,” said Venture capitalist Tim Draper, an original investor in CoinLab.
“As Mt. Gox’s creditors are some of the earliest believers in cryptocurrency, I look forward to getting my Bitcoin as do the tens of thousands of people that have claims.”
This new development in the Mt. Gox saga could be a factor in Bitcoin’s price falling back to $35,550 last night. However, the “move down was already expected from a TA point of view,” noted HXRO Labs. “Objectively, this should be bearish news short term.”