Mt. Gox creditors urged to drop lawsuit in favour of recovery plan

Former Mt. Gox chief executive Mark Karpeles opposed the class-certification procedure for a lawsuit brought by one of the platform’s creditors, arguing that the proposed recovery plan is more favorable to the creditor. This was сообщает CoinDesk.

Karpeles’s lawyers noted that the civil-rehabilitation plan provides for payments in fiat, Bitcoin, and Bitcoin Cash at their current values. Under this scheme, plaintiff Gregory Green would receive 6.33 BTC, 6.33 BCH, and more than 2.4 million yen, equivalent to $347,083. The calculation was performed using a calculator on the creditors’ help blog.

Green, who accused Karpeles of fraud and negligence, reported about $25,000 in cryptocurrency and cash held in his Mt. Gox accounts at the time of the 2014 hack. The former Mt. Gox chief’s lawyers noted that one yen, which Green will receive under the civil-rehabilitation plan, is currently worth more than $22,000.

Lawyers concluded that the class action will not be “the best way to resolve” compared with the recovery plan. For it, creditors of the exchange will soon be able to vote and recover losses through the Tokyo District Court.

Mt Gox Karpeles Opposition … by Jamie Crawley

Mt. Gox filed for bankruptcy in 2014. The recovery process for creditors was launched in 2018, but platform trustee Nobuaki Kobayashi has repeatedly asked the court to modify the timetable for provision of the recovery plan.

In April 2019, Kobayashi notified users who had not applied for compensation that they would also receive funds. Some creditors sold their rights to their bitcoins to interested parties.

At the end of February 2021, the Tokyo District Court approved the recovery plan proposed by the trustee in December 2020. Creditors were invited to vote on the decision. The exchange’s wallet holds 137 891 BTC.

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