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Hedge funds start buying Mt.Gox claims

Account holders of the bankrupt bitcoin exchange can sell their claims for 15% of the yen value. As of now, only one-fourth of the lost Mt. Gox funds is recovered.

Claimants can communicate with potential buyers through a website set up by a group of Mt. Gox ex-creditors. Among the website founders is Daniel Kelman, the attorney representing creditor interests in the legal dispute, according to Financial Times.

“We serve as an information portal and liaison to help you sell your claim in the MtGox bankruptcy. We’re in touch with third parties who are interested in purchasing claims and can help broker a deal. Purchasers are interested claims above $10,000 USD in value, but every claim will be considered,” the website states.

As they were submitted in 2014, the value of the claims was assessed according to the market price of bitcoin at that moment, namely $450. Now the cryptocurrency is trading at around $1,000 per bitcoin.

The group of potential buyers include four hedge funds from USA and Japan. Interested ex-creditors can contact the service via e-mail providing information about their claim including its amount and currency (bitcoin or fiat).

Japan-based Mt. Gox exchange used to be the largest BTC/USD trading platform, brought to the world in 2009 by Jeb McCaleb. The exchange, which in 2013 processed 70% of all bitcoin operations globally, collapsed due to a flaw in its code that allowed hackers to steal digital currency from customer accounts. In total, from 2011 to 2014 the violators managed to drain 744,408 bitcoins, including 100,000 belonging to the company itself. At that moment, the loss was estimated at over $450 mln and amounted to 7% of all bitcoins in circulation.

On 20 March 2014, the Japanese authorities in charge of the bankruptcy investigation recovered 202,000 bitcoins then worth around $116 million stashed in an old digital wallet since 2011. In April of the same year, under the pressure of multiple lawsuits the company gave up plans to rebuild under bankruptcy protection and asked the Tokyo court to allow its liquidation.

As of May 2016, the total amount of claims made by 24,750 creditors exceeds ¥2.66 trillion.


  • February 15, 2017 12:32 PM MSK