According to Coindesk's July 8 report, Mt. Gox's creditors can now choose to sell their claims to the Fortress Investment Group, ending the long-term recovery of bitcoin from the long-delayed bitcoin exchange. Wait and get real dollars.
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Michael Hourigan, president of the New York-based private equity firm, said in a letter to creditors that he was buying the claims for a bitcoin investment vehicle operated by the company.
In 2014, about 850,000 bitcoins disappeared from the Mt. Gox server, and the exchange collapsed. Although it was in bankruptcy at the time, the state had turned to civil recovery last year.
The creditors of the exchange want them to receive the lost bitcoin after the state transition is completed, rather than the equivalent cash at the time of the exchange crash. The case is currently being heard in the Tokyo District Court.
Sale of claims
Fortress and CoinDesk shared multiple copies of the file, one of which is as follows.
The beginning of the letter reads:
“Dear creditor, I manage an investment vehicle that has been buying Mt. Gox’s claims.”
The letter added:
“We have a separate review of each claim, but in general, our offer for each bitcoin claim is $900, which is about 200% of the value at the time of bankruptcy (the claim price per bitcoin) For $451), we can pay with Bitcoin or any legal currency of your choice. We will pay within 10 working days after the transfer of the credit card is confirmed."
(Fortness's letter to Mt.Gox creditors. Source: Coindesk)
Horrigan believes that the price of $900 is fair to both creditors and Fortress investors. (According to CoinDesk's bitcoin price index, this is equivalent to 7.5% of the bitcoin market price of $11,870.72 on Monday afternoon.)
A creditor who did not want to disclose his identity told CoinDesk that the amount and number of their individual claims were also included in the letter.
In April, Mt. Gox's former credit activist Andy Pag announced that he had sold his stake to a New York-based investment company at $600 a bit. He did not disclose the name of the company at the time, nor did he respond to a request for a comment on Monday.
Fortress has long been active in the field of encryption, and it is reported that Fortress plans to launch a bitcoin investment fund long before the collapse of Mt. Gox in 2013.
According to public documents, the New York-based company purchased $20 million worth of bitcoin that year.
Former Fortress CIO Michael Novogratz has also been active in the field, most notably for his creation of the "crypto commercial bank" Galaxy Digital.
Fortress was acquired by SoftBank, a Japanese-based company, at the end of 2017. Softbank itself has been active in the blockchain sector (but is less active in the Bitcoin project). However, according to the Financial Times, Fortress still controls its day-to-day operations.
Currently, both Holrigan and Fortress spokespersons did not immediately respond to Coindesk's request for comment.