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Friday, November 10, 2017

Crypto News: Former Bitcoin King Is Bankrupt—And He Could Get Rich Again

Former Bitcoin King Is Bankrupt—And He Could Get Rich Again

TOKYO—Creditors of the collapsed Japanese bitcoin exchange Mt. Gox are on course to miss out on the recent surge in bitcoin prices. Instead, it is the exchange’s former chief executive, now on trial for embezzlement, who could turn a handsome profit.

That is because the claims by people who deposited bitcoin at Mt. Gox are calculated based on the yen value of the cryptocurrency at the beginning of Mt. Gox liquidation proceedings in April 2014. Meanwhile, Mt. Gox, which is mostly owned by a company controlled by former chief Mark Karpelès, is sitting on more than 200,000 bitcoins worth 17 times as much today as they were then.

Bankruptcy-court filings suggest Mt. Gox will have hundreds of millions of dollars left over after paying creditors—money that Mt. Gox’s bankruptcy trustee has indicated would belong to the collapsed exchange’s shareholders, with Mr. Karpelès’s company being the biggest.

“When it’s all sorted out, Karpelès would pretty much get [the] vast majority” of the extra value, said Kolin Burges, a creditor who held 311 bitcoins at Mt. Gox which would be worth about $2.3 million today. “So that seems incredibly unfair.”


Full story at http://on.wsj.com/2AyFePy


Source: https://www.wsj.com


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