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Wednesday, July 23, 2014

Mt Gox Creditors Want Payouts In Bitcoins

Per www.globalinsolvency.com:


Thu., July 24, 2014
A group of creditors of Mt Gox, the collapsed Bitcoin exchange, is threatening a shake-up of bankruptcy proceedings in Tokyo unless the administrator settles its claims in the virtual currency, the Financial Times reported. Once the world’s largest trading venue for trading and storing Bitcoin, Mt Gox went offline in February saying it had lost track of about 750,000 bitcoins belonging to customers and another 100,000 of its own. It later said it had found 200,000 bitcoins in an old digital file – a disclosure which prompted the court to launch formal bankruptcy proceedings, rather than try to rehabilitate. At the first gathering of creditors at a Tokyo District Court on Wednesday, Daniel Kelman, a New York-qualified lawyer now resident in Taiwan, notified trustee Nobuaki Kobayashi of his plans to form a rebel group. Under Japanese law, a committee representing more than half of creditors has the power to “participate” in proceedings, so long as it satisfies certain conditions and is recognised by the court as representing the interests of creditors as a whole. A sale of bitcoins for cash could depress market prices, said Mr Kelman, while incurring transaction charges. But more fundamentally, he said, cash was not what creditors wanted.

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