Creditors and investors propose revival of Mt. Gox

Creditors and investors of the troubled Bitcoin exchange, Mt. Gox, have agreed to try to revive the exchange which would give them a 16.5% stake in the prospective company.

Mt. Gox, a Tokyo based exchange for the Bitcoin cryptocurrency, filed for bankruptcy in March after it claimed to have lost $473 million worth of Bitcoins; it was later revealed that the company found 200,000 out of the 850,000 lost Bitcoins in legacy wallets. The company, which had no feasible plans to recover from bankruptcy, reportedly filed for liquidation with a Tokyo-based court in April.

Now, US-based investors along with former owner and chief marketing officer of Mt.Gox have filed a settlement with the District Court in Chicago in order to halt the liquidation proceedings which received approval from Japan.

The consortium of stakeholders, known as the Sunlot Consortium, have revealed that the value obtained from liquidation would be much lesser than that obtained from reviving the exchange and sharing profits with former customers of Mt. Gox.

Sunlot consortium had been in negotiations with majority stakeholder, Mark Karpeles, with regards to reviving the exchange which hit a roadblock when Mt. Gox filed for bankruptcy. However, the recent decision to liquidate the assets urged the consortium to propose a new bid to save the exchange and provide better returns to its customers. A website called savegox.com whose tagline is "Rehabilitate, Don't Liquidate Mt. Gox" has also been set up for users to voice their ideas for revival.

Source: Wall Street Journal | Image via Savegox.com

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More than ever, really. Some major chains here accept it now. 1 exchange's failure doesn't discredit the authenticity and mechanisms of the coin, whose functions are made public. It ain't right what happened, but compared to the central banking system, this is a drop in the bucket compared to the robbery that goes on today. It's really hard to compare (because you can't see behind the scenes) while the crypto is not hidden, but made available for all to see. It's a lesson to be taken by others who use the coin, because we can see EVERYTHING. Folks need to learn how to monitor the blockchain, they could have avoided being embezzled.

Now imagine if the Federal Reserve's ledgers were made public, people would scream bloody murder every day, we'd never hear the end.

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my input on the topic, sorry. i say let gox die. those in charge have dabbled in fractional reserve, which obviously doesn't (can't) work with bitcoin... maybe novacoin, which is infinite in supply, but bitcoin does not take IOUs.

Wow, just let it die. I wish I could say no one would be stupid enough to go back to them, but I would probably be wrong.

Analogy: Sometimes cars break down. Sometimes its small, sometimes its big. Sometimes it's worth fixing a blown engine if the value of the whole is more then the parts individually. This is the case here I believe.

Arkos Reed said,
They didn't loose enough money the first time? Idiots...

if they are revived.. the company will still owe them money.. therefore they will lose less..