Investor Fortress is purchasing Mt. Gox creditors’ claims for $900 per Bitcoin. This is according to a letter sent to creditors a few days ago. Michael Hourigan, a managing director at the New York private equity firm explained that he is purchasing these claims in order to continue with the company’s bitcoin investment vehicle.
Mt. Gox Creditors Can Sell Their Claims
The cryptocurrency exchange Mt. Gox closed its operations back in 2014 after a hack that the platform experienced. At that time, the firm lost around 850,000 BTC from their wallets. This is now the largest attack ever experienced by a crypto exchange in the market. This created many problems in the crypto community because the exchange was the largest in the market at that time and it was responsible for the majority of Bitcoin’s trading volume in the world.
The exchange entered bankruptcy and its legal status changed last year to civil rehabilitation. Creditors of the exchange have been waiting to receive the funds for the BTC they had on the platform. At the moment, the case is sitting before the Tokyo District Court which is dealing with all the legal process related to the exchange.
The letter sent to creditors explains that Investor Fortress is going to be paying almost double the price of BTC users had at the time of the bankruptcy, which was close to $451. At the time of writing, Bitcoin is being traded above $12,500. In addition to it, the firm informed that they are able to pay both in Bitcoin or any fiat currency the creditor decides. The payment is expected to be processed in 10 business days after the claim transfer confirmation.
According to CoinDesk, there have been several copies of the Fortress letter released. This copy reads as follows:
“We review each claim individually but are now generally able to offer $900 per BTC claim, or roughly 200% of the bankruptcy value (which was $451 per BTC claim). We can pay that in Bitcoin, or any fiat currency of your choice. Our payment would be made within 10 business days of the claim transfer confirmation.”
CoinDesk says that the former Mt. Gox creditor advocate Andy Pag announced in April that he sold his stake to a New York-based investment firm for $600 per Bitcoin. However, he didn’t provide further information about the firm.
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