Lenders Mt. Gox offered to drop claim in favor of recovery plan

Former CEO of the bankrupt cryptocurrency exchange Mt. Gox Mark Karpeles opposed the class certification procedure at the suit of one of the platform’s lenders, as the draft restoration plan is more beneficial for the latter. This informs CoinDesk.

Karpeles’ lawyers noted that the draft civil rehabilitation plan provides for payments in fiat, bitcoin and Bitcoin Cash in accordance with their current value. Under this scheme, the plaintiff Gregory Greene will receive 6.33 BTC, 6.33 BCH and more than 2.4 million yen, which is equivalent to $ 347,083. The calculation was made through a calculator on the creditors help blog.

Green, who accused Karpeles of fraud and negligence , reported approximately $ 25,000 in crypto and fiat currency held in his Mt. Gox at the time of the hack in 2014. Lawyers for the ex-head of Mt. Gox noted that the one yen that Green will receive under the civil rehabilitation plan is currently worth more than $ 22,000.

The lawyers concluded that a class action lawsuit would not be a “best solution” unlike a recovery plan. The exchange’s creditors will soon be able to vote for him and recover damages through the Tokyo District Court.

In April 2019, Kobayashi notified non-reimbursed users that they would also receive funds. Some lenders have sold the rights to their bitcoins to interested parties.

At the end of February 2021, the Tokyo District Court approved the reimbursement plan proposed by the trustee in December 2020. Lenders were asked to vote for this decision. The trading platform wallet contains 137,891 BTC.

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