With Mt. Gox founder Mark Karpeles giving up on the idea of rehabilitating the Bitcoin exchange in favor of liquidating its assets, a group of investors is now seeking to buy it has launched a website to garner support from creditors of the bankrupt Bitcoin exchange to prevent a liquidation of its assets.
The new attempt from the investors’ group came after Mark Karpeles relinquished control to the Tokyo District Court, which will decide the fate of Mt. Gox in the coming weeks. Now the group on its website says that it needs creditors’ help to stop liquidation, which would be good neither for Mt. Gox creditors nor Bitcoin’s reputation.
According to the release by the group the liquidation of the Bitcoin exchange will leave the wrong impression with the general public and regulators. The group has been demonstrating against Mt. Gox in Tokyo against the company which had 127,000 customers at the time of its closure, and each of them is now a creditor with little hope of recovering the money.
The Group Asks Creditors to Fill a Form to Support Them
The group says that if somebody is a Mt. Gox creditor, he is requested to fill the form to support our plan to rehabilitate the exchange, conduct an audit to determine the true status of each customer’s balance, distribute the coin on a pro rata basis to the creditors, and help in recouping the remainder of the losses.
According to this group of investors liquidation is a last resort when all other avenues fail, including rehabilitation. It also accuses that there have not been any attempts to save Mt. Gox. No efforts were made to get it audited or hear the creditors and their losses by the Tokyo District Court.
The Likely Impact of Liquidation
The website also reveals the grave impact liquidation of Mt. Gox will have. It says that it will mean the loss of millions of dollars worth of lost Bitcoins. Liquidation will also set a dangerous precedent for the community sending a message that these enterprises are either too difficult to untangle or not important enough to save.
The group of investors showed their concern about the interest of creditors as according to it they would likely receive a meager percentage of their holdings and not the one that they deserve because most of the assets would go to paying bankruptcy lawyers and the like. The worst part about the entire process is that it will take years.
To contact the reporter of this story: Deepak Tiwari at email@example.com