This week, Mt Gox creditors expressed deep dissatisfaction with the ongoing bankruptcy process. According to Kolin Burges, founder of the protest website Mtgoxprotest, the bankruptcy trustee is likely to sell the remaining 200,000 bitcoins but pay claimants only $483 per BTC, with the remaining proceeds going to shareholders. Burges called the outcome "terrible news" for those who originally held Bitcoin on the exchange.
Why Claimants Get Only $483 per BTC
Burges explained that the liquidation follows corporate law, not bankruptcy law, meaning any surplus after paying fixed claims flows to shareholders. Despite Bitcoin's significant price increase since the exchange collapsed, claimants will not benefit from the appreciation. "They don't currently know of a way to avoid this situation," Burges stated.
Coinlab Lawsuit: The Major Hurdle
The situation is further complicated by a $75 million lawsuit filed by Coinlab, a US firm that had a 2012 agreement to serve US and Canadian clients. Coinlab sued Mt Gox for breach of contract in 2013 after failing to obtain state licenses. Former CEO Mark Karpeles revealed that Coinlab's claim has reduced the overall recovery rate to roughly 59%. Sources indicate Coinlab refuses to settle and wants the case moved back to US courts, which could delay distributions for years.
Goxdox II Leaks: Inside the Coinlab Saga
The website "Goxdox II" has published leaked emails and documents alleging that Coinlab's founder Peter Vessenes "oversold his capabilities" and could not get licensed. The site claims Vessenes sued to extract a settlement from a $50 million liquidated damages clause. These leaks have fueled creditor anger, as they suggest Coinlab's litigation is the primary reason for the prolonged freeze on creditor payments.
Unfair Distribution: Fiat Holders Get 100%, BTC Holders Get Pennies
According to insider sources, most Mt Gox claims have been registered, but only two non-customer claimants remain: Coinlab and Tibanne (Mt Gox's parent). The trustee may use the Bitcoin sale proceeds to settle with Coinlab, leaving creditors with little recourse unless they formally protest. Many claimants argue that while fiat holders will receive 100% repayment and shareholders will be paid, the loyal customers who held Bitcoin will only get $483 per coin. They believe this outcome is fundamentally unfair, especially since their patience allowed the trustee to hold the 200,000 BTC over the years.
The Mt Gox bankruptcy remains mired in legal complexity. With Coinlab demanding a large payout and the trustee limited by corporate law, claimants face an uncertain timeline and a deeply disappointing payout.