Bitcoin Millionaire To Return $1.2 Billion To MtGox Victims
Brock Pierce, a bitcoin millionaire and the founder of a venture company Blockchain Capital, intends to revive the bankrupt Japanese exchange Mt.Gox, TechCrunch reports.
Pierce plans to return the lost funds to 24,000 affected traders and literally build a new company on the ruins of the old one. To this end, he will revive the brand of once the largest trading platform and challenge the current leaders — Binance and Coinbase.
The crypto enthusiast is confident that the Mt.Gox reserves still hold $630 million and about 150,000 bitcoins, which is a total of $1.2 billion. After clarifying legal and technical issues, Pierce is going to divide these funds between their real owners.
Besides, the entrepreneur will estimate the cost of the stolen coins and compensate them with the help of the Mt.Gox stakeholders. Pierce hinted that he can contribute $700 million to the project from his own pocket. He will also create an asset called Gox Coin, which will represent the share of investors in the new company.
The leaders of several blockchain companies have already called this idea crazy but admitted that it has a chance to fix such a massive failure in the history of bitcoin.
It should be reminded that Mt.Gox, one of the oldest crypto exchanges in Japan, was hacked in 2014 and lost 850,000 bitcoins. In 2017–2018, the trustee of the bankrupt platform sold out large amounts of cryptocurrency, but users did not receive full compensation.
According to Pierce, he first tried to buy the company in 2013, but he was not allowed to do that. After the collapse of Japan’s largest exchange at that time, the billionaire acquired 12% of its share just for one bitcoin. When it came to buying the remaining 88%, the representatives of Mt.Gox tried to stop the negotiations.
As previously reported, the BitPoint exchange helped Mt.Gox to sell off bitcoins.