Mt. Gox’s Ex-CEO Keen to offer the profits of Leftover Bitcoin after liquidation
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Mt. Gox’s Ex-CEO Keen to offer the profits of Leftover Bitcoin after liquidation

The now-defunct Bitcoin exchange, Mt. Gox, former CEO, Mark Karpeles is not interested in making a profit from whatever leftover tokens after the company filed for bankruptcy in 2014. The company is sitting with millions of dollars of the digital currency after settling the claims of the creditors of the exchange. The former CEO is reportedly stood to gain as much as 160,000 bitcoin and bitcoin cash after the liquidation.

Responsibility

During a question and answer session of Reddit on “Ask me anything,” the former CEO of Mt. Gox indicated that he did not want to profiteer from the remaining assets of the exchange. He was held responsible for turning the biggest Bitcoin exchange into a bankrupt firm. Despite this, he is eligible for bitcoin and bitcoin cash. Interestingly, these assets are valued at more than $1.1 billion currently. Karpeles disclosed that as part of the liquidation plan, this should have been distributed to the exchange’s shareholders.

He pointed out that the reason behind his stand was that the creditors’ claims value was calculated in the exchange rate of Japanese yen and Bitcoin as of April 2014 rather than the current rates. Therefore, the French citizen stated that he met the trustee of the bankrupt exchange to start civil rehabilitation proceedings. The trustee was appointed by a Court in Tokyo. The exchange has two shareholders, Tibanne and Jed McCaleb. While Tibanne, which is having 88 percent stake, is controlled by Karpeles, the remaining portion is held by San Francisco-based Jed McCaleb, who was also the original creator of Mt. Gox.

Only Available Way

Answering a question on the extent of money from the remaining assets of the Mt. Gox, Karpeles stated, “I don’t want this. I don’t want this billion dollars. From day one I never ‎expected to receive anything from this bankruptcy. The fact that today this is a ‎possibility is an aberration, and I believe it is my responsibility to make sure it ‎doesn’t happen…. That’s the only way any bankruptcy law can reasonably work. And yet, in this case, it ‎produces an egregiously distasteful outcome in that the shareholders of MtGox would ‎walk away with the value of over 160,000 bitcoin as a result of what happened.”‎

The former CEO pointed out that the civil rehabilitation is an important thing since he believes that a big chunk of the remaining assets would go towards taxes. Currently, Tibanne is also facing bankruptcy proceedings. Therefore, he indicated that he did not bother redistributing bitcoin and bitcoin cash to creditors if it is ever was given to him.

Denied Any Wrongdoing

It was in February 2014 that Mt. Gox suspended its trading apart from shutting down it’s exchange service and portal. This led to the filing of bankruptcy protection from creditors. The company started liquidation proceedings in April 2014. At that point in time, the exchange disclosed that about 850,000 bitcoins, which belonged to its customers, were found either missing or stolen. That was equivalent to $450 million in 2014.

However, the exchange was able to find about 200,000 bitcoins as the coins were stolen directly from the exchange. This was in contrast to the earlier belief of mismanagement or theft or fraud or a combination of these for losing bitcoins.

About the author

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Kyle Protho

Kyle is a computer engineer by qualification and a cryptocurrency author cum blogger by profession. Besides pizza and football, he is fantasized by the blockchain technology and its applications. So being from technical background and a professional author, he is a perfect fit.

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