Investors Seek to Give Mt.Gox Another Lease of Life

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Investors Seek to Give Mt.Gox Another Lease of Life

A group of Mt.Gox suitors have created a website to mobilize support from the virtual currency’s creditors to save its assets from possible liquidation.

“We need your help to stop a liquidation, which would be good neither for Mt. Gox creditors nor bitcoin’s reputation with the general public and regulators,” the potential investors wrote on their recently launched site.

According to Reuters, Mt.Gox, which once dominated the global bitcoin exchange, is on course for liquidation after a Tokyo court rejected its attempt to revive its fallen business, the court appointed administrators announced.

The administrators said that the court saw it difficult for Mt.Gox to execute the civil rehabilitation processes, hence denying it the go ahead.

The investor group, which is willing to acquire assets of the bitcoin exchange and revive it, has elicited support of several creditors and is hoping to persuade the court to review the rehabilitation proposal, as the Wall Street Journal reported on Thursday.

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In February, the exchange sought bankruptcy protection in Japan, claiming it had lost bitcoins worth nearly half a billion US dollars to hackers.

The company’s chief executive Mark Karpeles said he would not travel to the US to respond to queries about the bankruptcy proceedings.

Mt. Gox had 127,000 customers by the time it collapsed, and each one of them is now a creditor with no guarantee of ever recouping their lost bitcoin investment, the Guardian Reports.

The investors, under the umbrella of Save Gox, are attempting to stop liquidation so that they can have the opportunity to revive the firm.

The group has offered to distribute the company’s remaining assets to customers immediately, if allowed to take over Mt. Gox. They also promise to share revenue generated from business operation with the creditors. They plan to launch a range of recovery programs.

Mt. Gox was involved in the conversion of traditional currencies into Bitcoins. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

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