GoxRising Proposes Revival of Mt. Gox; Will Japan Grant the Proposal?
Mt. Gox, Japan-based and the biggest bitcoin exchange in yesteryears, was once administering 70% of the world’s BTC transactions. Enter February 2014; Mt. Gox was bankrupt after facing a sequence of hacking attacks, where billions of user funds (roughly 850,000 bitcoins) were pilfered. Also in that year, a $16 bln breach of contract lawsuit was filed against creditors of the exchange by CoinLab. Today, the co-founder of Blockchain Capital, Brock Pierce, wants to resurrect Mt. Gox through a coalition called GoxRising.
Pierce’s British Virgin Islands-registered GoxRising comprises of Mt. Gox creditors. The organization wants to re-establish the exchange and devise added economic advantages for creditor participants. It also intends for a complete recovery of the stolen funds. By 22 April 2019, GoxRising will proffer an extensive Civil Rehabilitation plan to the Japan Trustee.
About Brock Pierce
Brock Pierce, former child actor and now a crypto sector proponent, professes to have acquired a 12% stake – valued at 1 BTC – through his investment firm, Sunlot Holdings. This stake was previously held by Mt. Gox founder, Jed McCaleb, who is yet to affirm this claimed business deal.
TechCrunch reports, both Pierce and Sunlot desire to find the stolen funds and have it assessed for creditor redistribution. He states that no less than half of Mt. Gox hacking victims need to sign up to a creditor committee to set the GoxRising initiative in motion. ‘Things are on track to be resolved in the next three to five years,’ says Pierce, ‘If a [majority of creditors sign on] this could be resolved in maybe one year.’
The crypto-community shows optimism towards Pierce’s push to repay Mt. Gox’s every creditor:
Hey @brockpierce My losses from MtGox inspired me to create the glass books transparency protocol in 2014 and then launch http://Vaultoro.com to be the most transparent exchange in the world. If you want help in the resurrection let's talk.
How will the Japan Financial Services Agency Respond?
Crypto news outlet CCN provides an argument stating the FSA ‘might quash’ plans to bring back to life the now-defunct exchange. According to the CCN published piece, the main difficulty in the Mt. Gox revival is the ongoing charges filed by CoinLab against the creditors of the exchange; not to the exchange itself.
The FSA is even more stringent in licensing crypto exchanges which will also add challenges for the said proposal. The article ends stating that a plethora of elements the Mt. Gox situation ‘could prolong the process of relaunching the infamous bitcoin exchange.’