A group of investors, named Reuters, is asking to buy bankrupt Japanese bitcoin exchange Mt. Gox, for only 1 BTC, or around $400, the Wall Street Journal reported citing sources.
Mt. Gox, once the largest bitcoin in Japan, asked for approval of its Japanese bankruptcy court in February, saying that it noticed missing $750,000 bitcoins of their customers and $100,000 of its own bitcoins had been stolen by hackers, after noticing a software defect in their security system.
The group said that it would take any responsibility for both Mt. Gox obligations and liabilities.
In documents that Mt. Gox submitted to the Japanese bankruptcy court the group highlighted plans for bringing back Mt. Gox exchange. The paper included proposals for customers who hold outstanding claims against the exchange.
Resuscitating Mt. Gox
The Wall Street Journal wrote: “According to people familiar with the plan, the group is justifying the low price because of the ‘information vacuum’ over Mt. Gox’s 550,000 missing bitcoins, currently worth about $220 million. It isn’t possible to place a value on the lost coins, they said.”
At the moment the true value of Mt. Gox is difficult to determine that’s why the offer price is so low, only 1 bitcoin.
The investor group wants to restore exchange and adjust half of its transaction fees in order to pay back its creditors and customers.
Mt. Gox said that 200,000 bitcoins were found in an old-format online wallet from 2011 that it had thought was empty. Such news brings back creditors’ hopes of recovering some of their lost digital money.
The creditors of exchange will be facing two options. One is that they can receive an amou 200, 000 recovered bitcoins, approximately 20% of the value claimed, or they can obtain an equivalent amount of an equity stake.
Bitcoins were introduced in 2009 and since then have become the most famous among existing digital currencies.
Japanese bankruptcy court must agree on the acquisition. However, the near-zero valuation ($400) of the proposed deal to Mt. Gox could show to be an obstacle.
Diverse group of investors seeks ownership
The investor group includes Brock Pierce, a technology inteupreneur, also a founder of KnCMiner and GoCoin, and the creator of a prominent bitcoin syndicate.
Other members are William Quigley, a managing director from Clearstone Venture Partners, and John Betts, a former Morgan Stanley and Goldman Sachs executive who would be a new CEO for Mt. Gox.