Bitcoin traders settle for stake in Mt. Gox

Customers have agreed to a share in a 16.5% stake when Mt. Gox is sold to Sunlot

Tags: CanadaJapanMt Gox (mtgox.com)USA
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Bitcoin traders settle for stake in Mt. Gox The two customers will split the 200,000 bitcoins that Mt. Gox said it found after seeking bankruptcy protections.
By  Helen Gaskell Published  April 29, 2014

Two Mt. Gox customers have agreed to settle their proposed class action lawsuits that alleged the company defrauded them of hundreds of millions of dollars, Reuters reported.

The customers, one from the US and one from Canada, have both agreed to share a 16.5% stake when Mt. Gox is sold to Sunlot, a firm backed by child actor-turned entrepreneur Brock Pierce and venture capitalist William Quigley.

The two customers will also split the 200,000 bitcoins that Mt. Gox said it found after seeking bankruptcy protections as well as up to $20m in fiat currency, held by the administrator for Mt. Gox.  

Jay Edelson of the Edelson law firm, the lead attorney in the U.S. case said in a statement: "This is the customers' best option and the only chance they have for full restitution".

Sunlot has proposed buying Mt. Gox for one bitcoin, or less than $500, according to the Wall Street Journal. The sale to Sunlot must be approved by the Tokyo court.

The settlement releases Mt. Gox's founder, Jed McCaleb, and Gonzague Gay-Bouchery, former chief marketing officer who have committed to help pursue the class action against the remaining defendants: Mt. Gox CEO Mark Karpeles, parent company Tibanne, the company's banking partner Mizuho Bank Ltd and others.

The settlement needs to be approved by Canadian and US courts overseeing the class action cases.

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