In a phone conversation Tuesday, Betts stressed the group's
priority is returning funds to customers, and in restoring
confidence to the broader Bitcoin ecosystem. Under a liquidation
scenario, it's possible customers would face greater difficulty
in retrieving the entirety of their missing
Bitcoins. And even if some were
recovered, Betts said, it's conceivable the alleged thieves could
unwittingly end up with a share of them. Sunlot hopes to hire an
independent auditor who could resolve these issues, and they're
offering an incentive bounty of 10% of recovered assets
would reward those participating in the
We asked that investor, John Betts, whether there is some kind of underlying asset they are targeting that no one has realized yet.
"Mark decided to, based on bad legal advice, put his interests ahead of creditors so he wouldn't have to appear in U.S. courts," Betts said.
Unaudited reports suggest MtGox the company may have 200,000 Bitcoins to its name. Those have been accounted for but are under the control of MtGox's bankruptcy administrator. At Tuesday's prices, those 200,00 Bitcoins would be worth $88,400,000.
"We will get access to log files, bank records, data, so we can do a full forensic audit, to best explain how this occurred and come up with a strategy for recovering the missing assets."
What's more, 553,000 Bitcoins belonging to Gox customers are missing. They're believed to have been stolen.
Tokyo, Japan Guwashi999 via Compfight cc
Karpeles did not respond to an email request for comment.
The outcome of Sunlot's entire rescue gambit lies in the hands of the administrator. Betts said Mark Karpeles, Gox's former CEO, reneged on an agreement to sell Sunlot the company directly, and instead began bankruptcy proceedings, making the administrator the defacto overseer of the exchange.
But the guys behind a group called Sunlot have some heft. Two are execs at major venture capital firms that combined have invested more than $1.5 billion. Another helped build electronic trading platforms for Goldman Sachs and Morgan Stanley.
"Recovered funds go to customers until they are made whole," Betts said. "In the possibility that we are able to recover assets above and beyond what the customers lost, then technically they will go to the company, of which the customers will own 16.5%... That will put the company in an earlier position to post a dividend further benefiting customers from their losses."
On Monday night, a group of investors announced they'd agreed to shoulder obligations in a class-action settlement against MtGox executives with the goal of preempting the liquidation of what once the world's largest Bitcoin exchange.
On the surface, attempting to preserve MtGox doesn't make much sense. Its collapse is widely accepted as Bitcoin's largest setback to date, and the exchange would therefore seem to have no brand equity left.
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