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Mt Gox Creditors Receive A Raised Buyout Offer From Fortress Group facebook

Mt Gox Creditors Receive A Raised Buyout Offer From Fortress Group

Shailesh Panwar by Shailesh Panwar - 01:38 PM Feb 20, 2020
Mt Gox Creditors Receive A Raised Buyout Offer From Fortress Group

Fortress Investment Group has raised its proposal to buy claims from creditors who wasted funds in the notorious $480 million Mt. Gox hack. The group, which intended to benefit by finally recovering the Bitcoin, increased its offer on the digital currency to 88% of the account value estimated.

Previously, a report stated how the group calculated offers to creditors. The recent proposal of $1300 was higher than the $755 proposed in December due to the latest surge in the value of Bitcoin.

One Managing Director from Fortress, Michael Hourigan, cited that the offer was still discounted due to the expected timeline of 3 to 5 years and financial risk on continuous litigations.

Mt. Gox Falsified The Data

In 2014, the cryptocurrency exchange went bankrupt after investors, as a whole, lost 850,000 Bitcoin, which was approximately 7% of the total existing supply during that time. Mark Karpeles, CEO of Mt. Gox, was charged with fraud and falsifying data, but notably received a unique not-guilty judgment in the Japanese court for the more grave charges.  The CEO was no longer in bankruptcy, notably as a consequence of this verdict, which has enabled creditors to recover some of their losses. As from October 2019, Mt. Gox has stated that 56 people have registered such appeals in the Tokyo District Court.

Previous Offer From Fortress Investment Group

Earlier in December, Mt Gox Creditors got a buyout offer from Fortress Investment Group. Also, Fortress Investment Group sent out an updated letter written by the M.D. Michael Hourigan to thousands of creditors pledging to return 70% of their total claim. Apart from 56 creditors, two significant creditors registered the case on Mt Gox, including Tibannee, the parent company of Mt. Gox and CoinLab, a US-based Bitcoin incubator. At that time, the Japanese court granted the claimed award of $35 million to Tibannee and the same amount to CoinLab.

About The Author
Shailesh Panwar

Shailesh PanwarShailesh is an ardent follower of the crypto world and keenly watches every development taking place in the cryptocurrency space. He loves to voice his opinions through well-curated blogs and articles, which throw light on different facets of the crypto industry.

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