Mark Karpeles is quite active on Reddit and has been very open about the whole bankruptcy process. You can read all about it in his comments: http://reddit.com/u/magicaltux and in the subreddit http://reddit.com/r/mtgoxinsolvency
His preference would be for the bankruptcy trustee to directly distribute the bitcoins to claimants, which would actually be a much faster and easier way to distribute the money than the traditional banking system, and has the added advantage that the bitcoins wouldn't need to be sold. However, the Japanese bankruptcy process is extremely unlikely to allow this. Also the effect of 200k bitcoins suddenly being distributed to thousands of people around the world might be to crash the bitcoin price, as some will sell immediately and more will probably sell when the price declines.
He realizes that if he receives any money after the bankruptcy he will immediately be tied up in even more lawsuits which will drag on for years if not decades. He has said that in this scenario he would try to distribute the money to claimants rather than keeping it in an attempt to avoid these lawsuits, but it seems unlikely to work. He may be cursed to receive hundreds of millions and have it tied up in lawsuits for the next decade, ultimately ending up in personal bankruptcy again.
>Someone will sue Mark Karpelès until he doesn't have a billion dollars' worth of bitcoins any more. The bankruptcy estate might only owe the customers $500 per bitcoin, but they -- and regulators, etc. -- might have a case that Karpelèsowes them the remainder, due to negligence or unjust enrichment or general come-on-man
I...and perhaps I'm being to glib...find it highly amusing that the same people making the argument of rejecting states and fiat currency and regulation and structure are frustrated that their attempts to use those structures requires them to adopt all the parts of it, not just the parts they need to recoup their losses from a con man.
> After accounting for smaller amounts of nonbitcoin assets and liabilities, Mt. Gox has a surplus on paper of ¥111 billion, or $977 million, that could go to its shareholders, according to a calculation by The Wall Street Journal.
So the shareholders of an incompletely run company should have dibs on the capital gains of assets they failed to secure properly? To me, this seems neither fair nor societally beneficial.
If someone lends a company their property, after which the company loses it, and the price of this property goes up, it just implies that the creditors need more money to get back the property that belongs to them - regardless of whether we’re talking about bitcoins, gold or lambs wool. Surely, the goal of bankruptcy must be to make creditors whole, not enrich shareholders of the company that failed to live up to its promises.
Another great piece by Matt Levine. I think legally the customers are only entitled to what they invested, but at the same time, Mt. Gox should not get that as it was profits from nefarious gains. So I think that money should go to the government as a penalty. Make the customers whole, zero out Mt Gox debt and obligations, and rest to the government.
Well in addition to Mt. Gox being in bankruptcy proceedings right now, Mark Karpelès is also going through a personal bankruptcy process as is his holding company , Tibanne, which holds an 88% share of Mt. Gox.
I've got to imagine that he wants the Mt Gox situation handled ASAP so he can get any funds from it to solve his own bankruptcy issues.
I'd imagine that this provides a pressure point for the Mt Gox stakeholders where they might be willing to play ball and let the bankruptcy proceedings work at a much faster pace in return for a much larger portion of the remaining Mt Gox assets.
Having said that, according to the WSJ...
> "The customary period in which creditors may dispute the trustee’s decisions on claims has ended."
...so perhaps Mark Karples may decide to play hard ball and hope that the creditors just want the coins sold and money disbursed before bitcoin has another chance to collapse?
Lots of fun game theory to think about here.
"Again, the main function of a bitcoin exchange is to get its bitcoins stolen..."
I recall that https://bitcoinbuilder.com allowed people to purchase locked up GOX coins during this fiasco. This would be a good time to check up on those accounts.
So what happens when Karpeles needs to sell all of those bitcoins to make the creditors whole in yen? And also: when will this happen?
In 2014 when MtGox went bankrupt it took the Bitcoin market price down with it into a multi year bear market. One wonders if the sale of these $1.5 billion in coins won't bring about a second Goxing so to speak if they spook the market by selling off such a massive number of coins.
So, I had bitcoins stored at MtGox at the time all of them were stolen or "disappeared". Can anybody tell me if there is some action I can take to claim them back ? Do I have to take legal action ? Thank you!
> Mt. Gox . . . suffered the fate of all bitcoin exchanges, and had its bitcoins stolen.
Wow. This is an embarrassing demonstration of the authors ignorance of the current state of the cryptocurrency market.
It is appalling that former CEO Mark Karpeles may benefit from the exchange collapse he caused through either incompetence or thievery. But it's hardly different from the rewards paid out to those who caused the US economic melt down in 2008.