MT Gox Trustee Enters Talks with Kraken

0

Nobuaki Kobayashi, the MT Gox Rehabilitation Trustee, has signed a memorandum with Payward, Inc, the company which operates Kraken.

Little further is revealed except that “the parties thereto will engage in good faith discussions regarding future support from Payward, Inc. in the Civil Rehabilitation Proceedings (the “Memorandum”).”

They say “the support-related provisions under the Memorandum are merely non-legally binding declarations, and the Memorandum is non-exclusive.”

Leaving us in no better position than reading tea leafs, with the trustee saying that “details of the future support from Payward, Inc. will be discussed at a later date.”

MT Gox creditors are currently struggling to meet a deadline of 22nd October to file civil rehabilitation claims in a re-filing of the bankruptcy claims that were made all the way back in 2015.

Many complain so much time has passed, they don’t have the needed information. Plenty have forgotten their password, and some are puzzled at a security question which they don’t remember ever entering.

Many, therefore, are re-filing their claims on paper, but while they’re meant to receive an email to confirm the paper claims have been received, many are saying they have received no such email weeks later.

It is unclear whether this re-filing process will now be irrelevant for those that filed their claims through Kraken in 2015.

That’s because this announcement seems to suggest the crypto funds will probably be re-distributed through Kraken, which was the original plan back then.

Mark Karpeles, the former MT Gox CEO, then decided to go for straight bankruptcy, but now so many years later MT Gox creditors are in profit by some 3x-4x.

So they’ve gone back to civil rehabilitation, with crypto funds now to be re-distributed soon sometime in early 2019 or earlier.

That’s in addition to the fiat funds, which makes calculations a bit complex but it should roughly translate to about 0.25 fiat worth per 1 btc, plus then the bch in addition.

The trustee sold about half a billion worth of both btc and bch up to March 2018, leaving 165,000 btc and bch. That’s meant to cover all claims for the then MT Gox customers in fiat amounts at a price of about $500 per btc.

Then he sold $250 million worth of btc and bch between March and June, which is probably meant to cover any lawsuits and any ancillary claims, with this $250 million practically speaking to be discounted as far as MT Gox customers are concerned.

That leaves them with 140,000 btc and 140,000 bch. About 1 million coins were allegedly hacked, so each creditor should receive circa 0.14btc and 0.14 bch for each bitcoin they had on gox, plus around $500 per btc.

That being each MT Gox customer should receive about $1,500 in fiat equivalent for each bitcoin they had in gox at the time it went under.

Obviously some might not claim and so on, so it may be slightly higher, but the figure is probably not very far off from the napkin maths.

If distribution does go through Kraken, then it should be very convenient for former MT Gox customers and it should be quite speedy. Verification in that case, at least for those who filed their claims through Kraken, should also be quite automatic.

So saving creditors some money in what might be a pretty swarmed Kobayashi office with piles of re-filed claims containing highly sensitive and personal data which they clearly have been unable to get through so far because people are not getting email confirmations.

That’s probably because these events are so old, no one remembers anything so they all sending dead paper trees which they’ll probably not be able to get through for months on end.

Nor do they need to. They have the claims. They were made years ago. And for those that were made through Kraken, nothing can be safer than automatically reviving those old claims.

That’s because since, effectively all the MT Gox databases have been leaked. So impersonation and so on would be very easy on paper, but through Kraken it would be extremely difficult.

So hopefully perhaps some sense will finally prevail in Japan, but with this being Gox, we hold no hope of it being anything more than a clown show to the very end.

Copyrights Trustnodes.com

 

Leave a Reply

100000
  Subscribe  
Notify of