MTGox - 507 Capital (2024)

BACKGROUND

Mt. Gox was a bitcoin exchange based in Tokyo, Japan. Within 4 years of launching it was handling over 70% of all bitcoin transactions worldwide, was the largest bitcoin intermediary and became the world’s leading bitcoin exchange. However, in April 2014, the company began liquidation proceedings. Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing, and likely stolen, the value of which was more than $450 million. Many questions remain unanswered. 507 Capital has been involved with the case since 2016 and we want to work with creditors to help them understand the facts of the case and what it means to sell their claim.

CURRENT STATUS & PROCESS

  • In 2018 the bankruptcy case of MtGox was changed to Civil Rehabilitation. Civil Rehabilitation is a new legal
    proceeding which requires the refiling of all customer accounts (and other creditor claims).
  • Claims were accepted/rejected as of March 2019
  • All proceedings will be based in Tokyo, Japan.

CREDITOR MEETINGS

In insolvency proceedings, creditors have certain rights for information from the bankrupt estate. One of the most basic rights is the right to attend creditor meetings where you will be given updates on the administration of the estate, estimated recoveries per claim, and a timeline for the reorganization.

COINLAB

The current largest issue surrounding the estate is the multi-billion dollar claim filed by CoinLab for damages arising from their breach of contract. Although we think it is likely that CoinLab will be entitled to some contractual damages, we believe their claim amount is drastically over inflated. Therefore we anticipate serious and prolonged litigation. The process of litigating, rejecting, and appealing claim amounts can take periods exceeding several years.

LATEST CASE UPDATE

Following the last creditor meeting, the three most important updates on the case are:

  • Customer account claims have been accepted/rejected. If you filed a claim you should have received a confirmation email from the trustee’s office informing you of the result of your claim.
  • CoinLab litigation is ongoing. We expect the claim to be rejected and significantly reduced, but we also expect this decision to appealed.
  • The trustee is considering additional options for exchanges to deliver BTC at the end of the Civil Rehabilitation proceedings.

EVERYTHING YOU SHOULD KNOW IF YOU HAVE A CLAIM

1. WHY SELL (AND WHY NOT) TO SELL YOUR CLAIM

There are multiple reasons to sell your claim. The overarching reason is because you need to monetize this asset for cash to spend somewhere else.

Here are some reasons why people have sold their claim in the past:

  • MtGox has been huge headache and administrative time drain.
  • They desired to reinvest their funds directly in BTC to leverage movement in price.
  • They desired to purchase a different asset, such as a home or put their child in private school.
  • They want to invest funds directly in their own business or start up.

One of the biggest misconceptions is that if you are a believer in Bitcoin you shouldn’t sell your claim. In reality, selling your claim for cash now and investing directly in Bitcoin will produce a greater exposure to Bitcoin long term, rather than indirectly holding Bitcoin through a MtGox claim. This is especially true if and when the trustee sells additional coins from the estate.

Selling a claim does not make sense for everyone, though. If you do not need cash or have a better investment opportunity, then keeping your claim is probably the best option.

2. HOW TO SELL YOUR CLAIM

Selling your claim is a fairly straight forward process consisting of two steps.

  1. The first step is signing a claims sale agreement.
  2. The second consists of a claims transfer with the trustee.

We’re happy to discuss this process further with parties interested in selling their claim. Please email brian@507capital.com

3. HOW LONG IS THE PROCESS? WHAT NEXT?

The process of selling a claim takes approximately two weeks. Paperwork by the seller can be accomplished on day one. Most of the selling process consists of waiting for the Civil Rehabilitation trustee to review the documentation. This can take 10-15 business days. If you would like to sell your claim, begin by reaching out with your name and claim number to brian@507capital.com. We will need verification of acceptance by the trustee, which is available in your online MtGox, or, in your acceptance email from the trustee if you filed offline.

MISC / ADDITIONAL Q’S YOU MAY HAVE

  • Do we get any of the surplus?
    Under Civil Rehabilitation customers will get pro-rata shares of the holdings of their original accounts. This means that BTC will be returned to the original owners of BTC which were held in the customer accounts. You will not receive all of your BTC (A claim holder who had 10 BTC in his or her account when MtGox shut down will not receive 10BTC), but you will receive a pro-rata share of what BTC is available.
  • Is it really the case that surplus would go to the shareholders as 3/4 of all assets were lost during their responsibility (the court and the trustee were not clear about this)
    This is the case under Japanese bankruptcy law, but not the case under Japanese Civil Rehabilitation law. Under the Civil Rehabilitation proceedings customers should receive their full cash claims and should receive a pro-rata share of the Bitcoin.
  • And what about Bitcoinica? what is the relation with MTGOX?
    Bitcoinica was a New Zealand based cryptocurrency exchange similar to MtGox. Because MtGox was such a dominant exchange at the time it went bankrupt, Bitcoinica held some of their customer coins on MtGox in an account. So, Bitcoinica is a large MtGox creditor. Bitcoinica itself is bankrupt itself in New Zealand, so the claim is actually owned by the Bitcoinica liquidating estate.

4. WHAT ARE THE TAX IMPLICATIONS OF SELLING MY CLAIM?

For general questions regarding MtGox claim and general crypto taxes, please feel free to email brian@507capital.com for general information.

Have another question? Email us at brian@507capital.com and we’ll add it to the FAQ!

MTGox - 507 Capital (2024)
Top Articles
The Future of Wealth and Income: New Paradigm
How to Budget Money - Sherry Lou Miller
Mickey Moniak Walk Up Song
Bashas Elearning
Wordscapes Level 6030
Kaydengodly
Gabriel Kuhn Y Daniel Perry Video
Sissy Transformation Guide | Venus Sissy Training
Puretalkusa.com/Amac
Think Up Elar Level 5 Answer Key Pdf
Hood County Buy Sell And Trade
Cpt 90677 Reimbursem*nt 2023
Dr Adj Redist Cadv Prin Amex Charge
Cambridge Assessor Database
Unterwegs im autonomen Freightliner Cascadia: Finger weg, jetzt fahre ich!
The best TV and film to watch this week - A Very Royal Scandal to Tulsa King
Hyvee Workday
Between Friends Comic Strip Today
Dr Ayad Alsaadi
Used Safari Condo Alto R1723 For Sale
Dcf Training Number
Azur Lane High Efficiency Combat Logistics Plan
Weldmotor Vehicle.com
Craigslist Ludington Michigan
Umn Biology
Taylored Services Hardeeville Sc
24 Hour Drive Thru Car Wash Near Me
Courtney Roberson Rob Dyrdek
Redding Activity Partners
Broken Gphone X Tarkov
The value of R in SI units is _____?
Envy Nails Snoqualmie
Does Iherb Accept Ebt
Polk County Released Inmates
Metra Schedule Ravinia To Chicago
Otter Bustr
Regis Sectional Havertys
Dmitri Wartranslated
Geology - Grand Canyon National Park (U.S. National Park Service)
Heelyqutii
Craigslist Mexicali Cars And Trucks - By Owner
Best Restaurants Minocqua
Saline Inmate Roster
Flappy Bird Cool Math Games
A rough Sunday for some of the NFL's best teams in 2023 led to the three biggest upsets: Analysis
Race Deepwoken
Is Chanel West Coast Pregnant Due Date
Craigslist Anc Ak
Fresno Craglist
Puss In Boots: The Last Wish Showtimes Near Valdosta Cinemas
Prologistix Ein Number
Latest Posts
Article information

Author: Edmund Hettinger DC

Last Updated:

Views: 5904

Rating: 4.8 / 5 (58 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Edmund Hettinger DC

Birthday: 1994-08-17

Address: 2033 Gerhold Pine, Port Jocelyn, VA 12101-5654

Phone: +8524399971620

Job: Central Manufacturing Supervisor

Hobby: Jogging, Metalworking, Tai chi, Shopping, Puzzles, Rock climbing, Crocheting

Introduction: My name is Edmund Hettinger DC, I am a adventurous, colorful, gifted, determined, precious, open, colorful person who loves writing and wants to share my knowledge and understanding with you.