Home News Bitcoin Investment Group Offers to Buy Mt Gox Victims’ Bitcoin Claims

Investment Group Offers to Buy Mt Gox Victims’ Bitcoin Claims

July 09, 2019 16:10
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Investment group, Fortress is offering to buy the Mt Gox victims’ Bitcoin claims for $900. The entity which is based in New York is sending letters to the creditors of the now-defunct exchange and is asking them to sell their claims for $900 per bitcoin, reported news portal, Finance Magnates.

This letter comes as bit of a twist, since it was earlier reported this year, that the creditors may receive their funds soon. Crypto-News India had reported that a few documents from the exchange revealed that, the investors may be rewarded for their patience and finally receive all their lost funds. Nobuaki Kobayashi, popularly known as Tokyo Whale in many circles and trustee to Mt. Gox, has announced he will be making is decision known soon, following his release of new documents.

According to Kobayashi, the creditors will receive their payment in either cash or cryptocurrency, once the exchange’s bankruptcy plans are approved. In case users want their payout money in cryptocurrency, they may have to set up new accounts on other exchanges.

The portal further stated that, the letter was signed by Michael Hourigan, a managing director of the firm. Given the current market value of bitcoin, Fortress is only offering 7.1%. However, Hourigan said that the rate is fair. He said, “We review each claim individually but are now generally able to offer $900 per BTC claim, or roughly 200% of the bankruptcy value (which was $451 per BTC claim). We can pay that in Bitcoin, or any fiat currency of your choice. Our payment would be made within 10 business days of the claim transfer confirmation.”

In June, the Chief Executive Officer (CEO) of the exchange, Jed McCaleb, was facing more lawsuits over his handling of the fracas.

News portal, Nasdaq, had stated two plaintiffs Joseph Jones and Peter Steinmetz, filed a complaint with a court in California on May 19, accusing McCaleb of “fraudulent” and “negligent” misrepresentation of the exchange, which partially led to their loss of bitcoin when Mt. Gox suffered a major hack in 2014.

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A blockchain enthusiast, a wannabe-crypto investor and an all-around enthusiast! Loves travelling, especially to ASI-protected areas, believes in giving her best shot at everything she does! Definitely an introvert.


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