Mt. Gox! He’s going to be a billionaire
> In July, Karpeles attended a court hearing and pleaded not guilty to charges on money laundering and embezzlement, for his involvement in the loss of approximately one million bitcoins, which were worth $400 million during the period wherein the Mt. Gox bankruptcy was filed.
Over the past three years, from 2014 to 2017, the price of bitcoin has increased exponentially, from around $400 to $7,000, by 17-fold. During the investigation into the Mt. Gox bankruptcy from 2014 to 2016, 200,000 bitcoins were recovered and with that, Karpeles was requested to proceed accrediting creditors of Mt. Gox with the recovered bitcoins.
However, after a strange turn of events, it turns out that creditors of Mt. Gox, or former bitcoin traders on the Mt. Gox exchange, are set to be credited with Japanese yen equivalent to the value of bitcoin in 2014.
November 12th, 2017 6:09am
Mark Karpeles Will End Up Taking $859 Million From Mt. Gox Bankruptcy
November 12th, 2017 6:09am
On paper, the company of Karpeles, called Tibanne, owns about 88% of Mt. Gox as per the WSJ. After the bankruptcy filings are settled, Mt. Gox will be left with a surplus of $977 million worth of bitcoins. Out of that, 88 percent will be granted to Karpeles and in the end, after losing more than $7 billion of user funds, Karpeles will take home $859 million for his role in the demise of Mt. Gox.
November 12th, 2017 6:12am
"However, after a strange turn of events, it turns out that creditors of Mt. Gox, or former bitcoin traders on the Mt. Gox exchange, are set to be credited with Japanese yen equivalent to the value of bitcoin in 2014."
November 12th, 2017 7:11am
That's Trump level grift.
November 12th, 2017 7:26am
Is the OK-d by a Japanese court?
November 12th, 2017 7:39am
I wonder how good a hiding place $859m will buy you :-|
November 12th, 2017 8:11am
He's going to end up in prison
He couldn't keep track of passwords, wallets, and even the most basic stuff. What are the chances he followed every aspect of very complex banking, investment, and money transfer law.
November 12th, 2017 8:28am
OK let me work through the math.
He loses 1 million of other people's btc in 2014, worth $400 million (2014 price $400/btc) and files bankruptcy.
Forensic investigators recover 200,000 btc. This will be used to return funds to investors. But not in btc, in yen.
Since 1/5 were recovered, each creditor will receive the value of 1/5 the btc they had deposited, valued at the date of loss in 2014. 200k btc would be worth $80 million in 2014.
So we sell the 200,000 btc in 2017 for $7000/btc and earn $1.4 billion USD. We then pay back the $80 million to the creditors. Now we have $1.32 billion surplus, money left at the end of the bankruptcy settlement. Some number unexplained shuffling happens like paying lawyers and the court fees or something, and $977 million is left. Per bankruptcy law, the owners of Mt. Gox get that $977 million surplus. Karpeles owns 88% so he gets $859 million of that.
November 13th, 2017 12:13pm
Must be a rare thing to have a surplus, but I can see how it can happen with an appreciating asset. The problem is this asset wasn't his, it was someone else's, but somehow it is construed to belong to HIM instead of being considered recovered stolen or lost property belonging to others, which is what it was.
I don't see how legally that 200,000 btc is considered by the bankruptcy court to belong to Mt. Gox as an asset given that Mt. Gox DID NOT OWN IT.
November 13th, 2017 12:15pm
I'm renting a house and a car. I declare bankrutpcy. The court sells the house and car and gives me the money.
That is what happened here.
That is not legal or proper.
November 13th, 2017 12:16pm
Hmm, the Dutch of 800 AD had a legal provision for such a case.
De fine that a thief had to pay to the bereaved for the lack of the stolen object during the time between the theft and its replacement. This wirdira was additional to the compensation of the stolen value itself.