Mentougou Coordinator announces resignation, and the payment process may be extended for up to 2 years

Mentougou Coordinator announces resignation, and the payment process may be extended for up to 2 years

According to coindesk, last week, Mt. Gox Legal, head of Mt Gox's largest creditor group, Andy Pag, announced that he is about to resign. He said that Mt Gox is currently in a long-term legal quagmire, especially former Mt. Gox partner Coinlab. A large-scale claim was filed – possibly extending Mt Gox’s civil transformation process for up to two years.

Mt. Gox Legal is Mt Gox's largest creditor group. According to Andy Pag, more than 1,000 members currently claim to hold more than 150,000 bitcoins in Mentougou, equivalent to 15% of the total value of all creditors in Mentougou. The organization was formed in the fall of 2017 to promote Mt Gox from bankruptcy to civil recovery.

This shift is significant for the user: under the bankruptcy process, the exchange users receive the equivalent of the BTC equivalent of the MTC Gox bankruptcy loss; but in the civil transformation, the user will actually Received their loss of bitcoin compensation.

Civil compensation has regained its dawn

In 2014, about 850,000 bitcoins were stolen from the Mt. Gox wallet, the world's largest crypto exchange, due to hacking. Mt. Gox therefore filed for bankruptcy protection.

In the next four years, Mt. Gox experienced the failure of bankruptcy reorganization, the recovery of some lost bitcoin, the search for compensation users, etc., but the road to loss of users' claims is still in the foreseeable future.

Due to the sharp increase in prices during the period from 2014 to 2017, the value of the Mentorou trustee's assets once exceeded the Mentougou debt. Mt. Gox Legal was established, and Pag explained: “The top Japanese attorney fees are very expensive, so (we put them together).

With the continuous efforts of many creditors and creditor organizations represented by Mt. Gox Legal, in June 2018, Mt Gox entered the civil recovery process from bankruptcy proceedings, and the process is still in progress.

It is predicted that civil compensation will be paid in early 2019 or earlier.

Coinlab's sky-high claim

But things didn't work as expected, and a paper claim statement from startup incubator Coinlab disrupted the expected timeline.

CoinLab, a Seattle-based digital currency company, reached an agreement with Mt.Gox in November 2012 to provide Mt.Gox customer service in the US and Canada, namely the purchase and sale of Bitcoin in the US and Canada on the Mt.Gox platform. And trading.

Around May 2013, CoinLab sued Mt.Gox in a US court, claiming that Mt.Gox did not provide sufficient resources to fulfill the agreement and demanded compensation of $75 million. In September 2013, Mt.Gox filed a counter-suit against CoinLab in the United States, and the litigation of both parties has not yet been resolved.

Coinlab, who has not given up on its claim plan, has joined the civil reconsideration of its co-founder and former Bitcoin Foundation Chairman Peter Vessenes after Mt Gox entered the civil recovery process from bankruptcy, claiming more than 16,000 claims. 100 million yen, about 16 billion US dollars.

This day's price has caused a hot discussion among netizens. Kraken CEO Jesse Powell rebuked his application for “irresponsibility” and thought it was just to sigh a sigh of relief for the partnership.

Andy Pag also said that the judge may take several months to a year to evaluate Coinlab's claim, and if the claim is rejected, the company can file a lawsuit in court, which takes a year.

Once this problem is resolved, the creditor can vote on the civil compensation plan, and depending on the outcome, the potential amount paid to the creditor will be significantly different.

Coinlab's US attorney, Edgar Sargent, also said on a short AMA on Reddit a few weeks ago that if the original lawsuit was completely ineffective, the court would dismiss the lawsuit.

Former CEO of Mt Gox “Fa Fat” also indirectly confirmed its possible impact. He told CoinDesk, he said: "The court may urgently consider CoinLab's case and may be quick-fix, but CoinLab does not have the idea of ​​ending a battle that must be defeated. They may extend the trial process as much as possible."

He said that Coinlab is currently in a good position, "because they hold the entire sales process of Mt.Gox", but the company can quickly end this situation by signing a settlement agreement. If the settlement agreement is signed quickly, the payment will begin at the end of 2019.

Andy Pag's decision

Coinlab's churning seems to be shaking to the creditor's efforts to fulfill the claim.

18 months ago, Andy Pag founded Mt. Gox Legal and became the founder and coordinator of the organization. In the past 18 months, he has flown to Japan many times with Mt.Gox civil trustee Kobayashi Nobuaki (Nobuaki). Kobayashi) communicates and collects the latest information for members of the organization.

He said: "We spend time building relationships with all participants, trustees, other creditor groups (and) law firms."

And at the end of April, he will resign. Mt. Gox Legal's board of directors has begun the process of replacing him and publicly nominating a new coordinator. Although the new coordinator has not yet been confirmed, Pag expects that the organization may go to sleep because there are not many things that can happen before the legal requirements are resolved.

"The more the price of bitcoin rises, the more vultures there are around it. My personal concern is that we will only fall into the quagmire of litigation." "For me personally, this is a personal decision. It makes more sense to sell my claim."

Pag said he does not intend to wait for the court system to rule whether Coinlab has legal rights, but intends to sell its claim and leave Mt. Gox Legal to continue his life.

"I have put my career on hold for 18 months, and we have been defeated by other factions. This is a huge regret," he said. "I have decided that I would rather be happy and continue my life."

Source: Planet Daily