Investors plan to set Mt. Gox back on Bitcoin track

Tuesday 15 April 2014 00:05 CET | News

A team of investors have revealed plans to buy the assets of Mt. Gox and set the Bitcoin exchange back on track with the help of experts, according to a court filing in Japan, Reuters reports.

The group, which includes Brock Pierce and venture capitalist William Quigley, made the offer through a special purpose company established in the Cyprus Republic, the court filing shows. The Wall Street Journal, which first mentioned the proposal, said the group was seeking to buy Mt. Gox for a token payment of 1 Bitcoin, or about USD 400.

In the filing, the group listed Freeh Group International Solutions, a firm established by former FBI director Louis Freeh that has carried out a series of investigations into high-profile scandals, among a team of advisers it planned to tap for Mt. Gox.

Under the groups proposal, creditors would have the option of receiving payment from the 200,000 recovered Bitcoins or receiving the equivalent amount in equity in the new exchange, according to the filing. The group will consider acquisitions and an initial public offering as part of a longer-term strategy for Mt. Gox, the filing said.

A court-appointed administrator has to report on the results of an investigation into what led to Mt. Goxs collapse and whether it meets the criteria for rehabilitation under creditor protection or should be liquidated by 9 May.

The offer, filed with the Tokyo District Court in March 2014, is the first step in the rehabilitation of Mt. Gox since it claimed bankruptcy protection from creditors on 28 February 2014. Mt. Gox shut down its exchange and filed for bankruptcy in February. The exchange said hackers had stolen 750,000 Bitcoins belonging to its customers and 100,000 of its own Bitcoins after exploiting a security flaw in its software.

The investment group has proposed a new management team headed by John Betts, who founded a data management firm, according to Reuters. The group announced that it would develop a new trading and security platform and review its relationship with banks as part of its effort to revive the exchange. It also proposed a forensic investigation.

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Keywords: Investor, MT. Gox, Bitcoin, exchange, online payments, digital currency, crypto-currency
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce