Mt Gox Creditors Get Buyout Offer From Fortress Investment Group

Mt Gox, the infamous Bitcoin exchange declared bankruptcy in 2014 after the theft of around $480 million worth of Bitcoin. The investors in the exchange took them to court to get back some portion of their investment lost by the platform. Upon investors intervention, a Japanse court changed the status of the case from bankruptcy to civil rehabilitation, which opened the gates for creditors to recover some of their funds. The exchange currently holds 15% of the total amount of Bitcoin lost.

The Never-Ending Mt Gox Lawsuit Saga

Two major creditors filed the case against Mt Gox, including the parent company of the exchange Tibannee and a US-based Bitcoin incubator  CoinLab. Apart from these two major parties involved in the case, another 56 creditors also filed a petition to recover their fund. While the Japanse court approved the claims of two major creditors in question awarding 82,000 bitcoins and $3.5 million to Tibannee and $3.5 million to CoinLab,  the fate of other small creditors still look uncertain. However, no funds have been released even to the court-approved claims as well.

Fortress investment group in their letter noted the legal complexities involved in the case. It appealed to the creditors to take up the offer as these legal lawsuits would continue for years and would delay the release of funds. The letter read,

“These lawsuits threaten to delay and dilute distributions on your claim,”

The letter has given a deadline of 31st December to the creditors to decide whether they want to take up the offer or continue their legal battle.