Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Mt. Gox creditors ask judge to approve settlement
Author: Joel R. Glucksman
Date: May 15, 2014
Key Contacts
Back
The U.S. creditors of the now-defunct Mt. Gox bitcoin exchange have asked a U.S. judge to approve a proposed settlement that would revive the company, according to Bloomberg.
The settlement would still have to be approved by the Japanesebankruptcy court overseeing the company’s liquidation, but would return some money to depositors and resolve claims against a number of the firm’s executives. Mt. Gox principal Mark Karpeles would not be released from potential liabilities.
The exchange filed for bankruptcy in Japan on Feb. 28 after claiming to have lost 850,000 bitcoins, 700,000 of which belonged to customers who had deposited the currency in Mt. Gox “digital wallets.” At the time, the firm claimed that hackers had exploited “transaction malleability” to steal this money, but this claim has since been disputed. Shortly thereafter, Mt. Gox announced that it had found 200,000 bitcoins stored in an old-format digital wallet, but depositor losses still exceeded $218 million.
In return for settling separate class action lawsuits, U.S. and Canadian depositors would share a 16.5 percent stake in Mt. Gox following its sale to Sunlot, which has proposed to buy the firm for a nominal fee of one bitcoin, according to Reuters. Depositors would split the 200,000 bitcoins still in Mt. Gox coffers as well as the $20 million in fiat currency held by the Japanese bankruptcy administrator for the firm. This sale would have to be approved by the Tokyo court.
The settlement also releases Mt. Gox founder Jed McCaleb and Gonzague Gay-Bouchery, former-CMO, according to the news source. The two reiterated their commitment to aiding in the class action suit against the remaining defendents in the case, including former CEO Mark Karpeles, parent company Tibanne and Mizuho Bank Ltd.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
Types of Business Law Services Companies Actually Use
Business law services are legal services that help companies form, operate, transact, protect assets, manage risk, and resolve disputes. The phrase can sound broad because it is broad. A company may need help with entity formation one month, contract review the next, a commercial lease after that, and a business dispute later in the year. […]
Author: Scarinci Hollenbeck, LLC
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.