Fortress sets aside $100 million to make early payouts for Mt. Gox creditors

Investment firm Fortress Investment Group has proposed a preemptive buyout of Mt. Gox creditors’ claims ahead of the vote on the compensation plan, The Block.

The firm is prepared to compensate about 80% of the value of Mt. Gox creditors’ claims. According to civil rehabilitation plan, the vote on which will conclude in October, they will be able to receive up to 90%.

The proposed restitution scheme envisages payments in fiat currency, Bitcoin, and Bitcoin Cash. The other cryptocurrencies will be sold. Fiat payments take priority — part or all of the Bitcoin and Bitcoin Cash may be sold to cover them.

Fortress noted that payments under this proposal would not begin before mid-2022, and there is uncertainty surrounding its approval.

“Rather than waiting another year or a year and a half, we are offering a liquidity option for creditors who want to receive cash or Bitcoin right now,” said Fortress’s managing director Michael Hurigan.

Fortress has earmarked $100 million for the buyout of the claims. Mt. Gox’s wallet holds 137,891 BTC (~$7.9 billion at the time of writing).

The firm has previously made proposals to creditors regarding the buyout of their claims. In 2019 Fortress floated two options. One of them envisaged compensation of up to 70% of the market value of the lost assets.

For more on the history and collapse of Mt. Gox, read ForkLog.

The civil rehabilitation process began in June 2018.

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