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Bitcoin class action plaintiffs offered percentage of rebuilt Mt. Gox

updated 06:26 pm EDT, Tue April 29, 2014

Offer would conclude class action suit by US, Canadian customers

Bitcoin holders in the US and Canada, holding balances with now-shuttered Mt. Gox, are settling class actions against the exchange. The plaintiffs are agreeing to a proposal by investment company Sunlot Holdings to buy the exchange, and become part owners of the recovered exchange, according to court filings.

Approximately 750,000 Bitcoins belonging to customers and 100,000 coins belonging to the exchange, valued at over $450 million dollars as of March 1, were said to be lost in a hack when the Mt. Gox systems were breached unnoticed over the course of years. Mt. Gox officials say there was a also $27.4 million discrepancy in its bank accounts as of the time of bankruptcy filing in the US and Japan.

In return for concluding the class action, a 16.5 percent stake of the recovered Mt. Gox will be awarded to the filers after it is sold to Sunlot for one Bitcoin. Sunlot is backed by venture capitalists and ex-child actor Brock Pierce, star of The Mighty Ducks and First Kid. Customers will also split 200,000 Bitcoins the exchange "found" as well as $20 million in currency held by bankruptcy administrators.

"This is the customers' best option and the only chance they have for full restitution," said Jay Edelson, lead attorney in the US bankruptcy case. Japan's bankruptcy administrator has no comment as of yet on the settlement offer.




by MacNN Staff

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