Mt Gox Creditors Asked to Approve a Settlement Proposal Drafted by Coinlab

On January 15, the public was made aware of a deal between the firm Coinlab Inc., the Mt Gox bankruptcy trustee, Nobuaki Kobayashi, alongside MGIFLP, a subsidiary of Fortress Investment Group. According to the proposal, Mt Gox creditors will be able to claim as much as 90% of the bitcoin held by Kobayashi and the Tokyo court. Despite the recent reports, creditors still have to approve the proposal made by the company.

Coinlab Offers Mt Gox Creditors a Proposal

Last week, Mt Gox creditors were told there was a new online system dedicated to the claims they hold. Essentially, the Mt Gox creditors are a band of former customers of the exchange who want to obtain some of the funds lost during the breach seven years ago. Mt Gox was a bitcoin trading exchange and at the height of 2013, the platform was estimated to handle 70% of all BTC transactions.

Mt Gox was hacked for 850,000 BTC and the exchange closed its doors in February 2014 and filed for bankruptcy. 200,000 BTC was found after the bankruptcy and for the last seven years creditors have been trying to get their claim of stolen BTC.

A number of Mt Gox creditors, experts, and even the exchange’s founder have reported during the last few years that the company Coinlab Inc., led by Peter Vessenes has delayed the settlement proceedings. This is due to the fact that Coinlab has a litigation case against Mt Gox and former CEO Mark Karpeles. In 2019, following a delay from the Mt Gox trustee, bitcoin security specialists Wizsec published a scathing critique of the Coinlab claim for US$16 billion and alleged that it was “the elephant in the room causing this delay.”

Now it seems Coinlab wants to cut a deal with Mt Gox creditors as long as they vote to agree upon what the company has offered. Bloomberg contributor Matt Leising reported on Friday that Coinlab has come to an agreement with MGIFLP and the Mt Gox bankruptcy trustee Nobuaki Kobayashi.

Individuals on Social Media Don’t Favor the Story

The deal will allow creditors to obtain 90% of the BTC remaining under Kobayashi and the Tokyo court’s supervision. Leising’s report notes that creditors have to approve the deal and they can also wait for the lawsuit to settle. Leising is also the Bloomberg reporter that wrote about a so-called Satoshi claimant dubbed “Duality.”

Leising also discussed the story on Friday afternoon, and a number of people on Twitter responded to his tweets. Arcane Assets CIO, Eric Wall, wrote “Funny joke Matt,” and a number of people also talked about the deal on Reddit.

On the Mt Gox Insolvency Discussion Sub on Reddit, there were a number of people disgruntled with Coinlab’s deal. One person discussing the subject on the insolvency subreddit said that Coinlab would get 10% of the remaining cut, while another individual called Leising’s tweet “fake news.”