Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Investors try last-minute Mt. Gox revival as liquidation looms

A consortium that offered 1 bitcoin to buy Mt. Gox launches its own website

Article comments

The clock may be running out on Mt. Gox, but a consortium of investors still wants to relaunch the failed Bitcoin exchange.

A website called SaveGox.com has emerged calling for a halt of the liquidation of Japan-based Mt. Gox, which the Tokyo District Court is expected to authorize.

"Liquidation is a last resort when all other avenues fail, including rehabilitation. No attempt has yet been made to save Mt. Gox," the website says.

The consortium of U.S. investors calls upon Mt. Gox creditors to help stop a liquidation of the exchange, and support plans to audit its books and distribute bitcoin to creditors to reduce their losses.

Mt. Gox collapsed in February with liabilities of ¥6.5 billion ($63.6 million), saying nearly half a billion dollars worth of bitcoin was unaccounted for and that hackers had exploited a software problem.

SaveGox.com says Mt. Gox was hacked and that until a "suitable internationally recognized auditor" investigates what happened, the true scale of the liabilities will remain unclear.

The site cites as its backers Bitcoin investor Brock Pierce, entrepreneur Jonathan Yantis, venture capitalists William Quigley and Matthew Roszak, and John Betts, described as a Wall Street veteran. Earlier this months, reports said the consortium was offering 1 bitcoin (roughly US$490 at current prices) to buy Mt. Gox.

"You have to understand, of course, that Mt. Gox is much more than just the assets that it has," Quigley said in a TV interview with CNBC early this week. "The company still has a very important role, we believe, in the continuation of Bitcoin."

The site says Mt. Gox's 127,000 customers worldwide would be best served by its rehabilitation, but it does not provide specific details about how to rebuild Mt. Gox. The consortium did not immediately respond to an email requesting further information.

Rejecting Mt. Gox's bid for rehabilitation as it had no viable plan, the Tokyo District Court on April 16 appointed a provisional administrator to take over Mt. Gox's affairs as a prelude to full bankruptcy proceedings.

If the court moves ahead with liquidation, Mt. Gox's assets would be evaluated, sold off and any cash would be distributed to creditors based on their claims. The process would take longer than regular bankruptcies in Japan due to the complexity of the case.

Under a rehabilitation scenario, however, the tens of thousands of users who lost bitcoins in the collapse could potentially receive a share of future profits.

The site also suggests the consortium and a company it launched, Sunlot Holdings, had been working with Mt. Gox CEO Mark Karpeles toward rehabilitation until the Tokyo court moved to reject the rehabilitation option.

"We believe Mark Karpeles has changed course in an effort to avoid personal liability, but in doing so has sacrificed your interests," the site says, addressing creditors.

Karpeles and Mt. Gox have been accused of fraud in a class-action suit in the U.S., to which he was summoned for questioning by a Texas court in connection with the exchange's collapse.

A judge in the U.S. Bankruptcy Court for the Northern District of Texas, however, granted a motion by Karpeles' lawyers to delay his deposition, which had been scheduled for April 17.

Taking into account developments at the Tokyo District Court, the judge said a new date would be decided on or after April 24.

Karpeles could not be reached for comment.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *