An Investors Group Wants Bankrupt Mt. Gox for One Bitcoin

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An Investors Group Wants Bankrupt Mt. Gox for One Bitcoin
An Investors Group Wants Bankrupt Mt. Gox for One Bitcoin

An Investors Group Wants Bankrupt Mt. Gox for One Bitcoin

Mt. Gox, once the biggest Bitcoin exchange and the oldest as well, is bankrupt now and facing several complaints for payment from those who suffered the huge losses. Now, a group of investors wants to buy this bankrupt Bitcoin exchange for a token payment of one Bitcoin, or about $400 (the current exchange rate).

The major reason behind the one Bitcoin, the pecuniary value of the company, according to the investors group is that there is an information vacuum over Mt. Gox’s missing Bitcoins that made it hard to place a value on the lost digital currency. The group seems to be concerned about the investors who still hope for the recovery of their investments.

The investor group which comprises the renowned former child actor-turned entrepreneur Brock Pierce, and venture capitalists William Quigley and Matthew Roszak. These investors are looking for an opportunity wherein they can help the dissolved Bitcoin exchange generate confidence among investors.

Mt. Gox was once the largest Bitcoin exchange, and says that it lost 750,000 Bitcoins belonging to its customers and 100,000 of its own Bitcoins. It blames hackers who exploited a security flaw in its software. Earlier it had said that it was an inherent flaw in Bitcoin itself; however, later on it was cleared by the Bitcoin Foundation that it was not the problem with Bitcoin.

Later on, Mt. Gox filed for bankruptcy in Japan in February. However, again some staffers in the Bitcoin exchange had admitted that a lot of money was misappropriated by the CEO of the company for purposes other than allowed by the investors. The then CEO, Mark Karpeles had used the company’s money for day to day expenses.

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Investors May Get Some Money Back

The investors group that has shown its interest to buy Mt. Gox, and says that it will revive the exchange and set aside 50 percent of its transaction fees to pay back the customers and other creditors who incurred losses. Though there was news that Mt. Gox found 200,000 Bitcoins in an old-format online wallet, what happened to it is not yet known.

Though the investors group is willing to buy Mt. Gox, acquisition must be approved by a Japanese bankruptcy court. It could definitely generate concern when it is done for the near-zero value. However, any such development and promises for the creditors would be welcomed as they will see hope in it.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com