Fortress Investment Group, a leading New-York based firm, recently sent letters to creditors of Mt Gox, a defunct crypto exchange. In the letter, Fortress Investment indicated that they were looking to purchase their claim. In 2014, Mt Gox filed for bankruptcy following the loss of $480 million worth of bitcoin. Recently, a Japanese court changed the status of the firm from bankruptcy to civil rehabilitation.
It implies that the company could restructure its business, which means that some of its creditors would stand a chance of getting back their assets. Currently, Mt Gox holds 141,868 bitcoins from some of their top creditors. Going by the latest Gox website’s latest report, approximately 15% of the bitcoin lost initially.
In a recent letter by Michael Hourigan, the managing director of Fortress Investment Group, they plan to purchase their creditor’s bitcoin. They would, however, cap the selling price at the current market price. Bitcoin is currently trading at $7,200 per coin. While creditors can expect guaranteed payments, FIG, New York, will benefit from 30% payment that they could have received.
The letter by Fortress also highlights the lawsuit filed by two of the largest creditors. One is CoinLab, the United States-based business incubator, and Tibannee, the parent company of Mt Gox. Tokyo District Court’s October report indicated 56 Mt Gox creditors had made petitions for their claim assessments.
Recently, the court has made approvals relating to Tibannee claims over 82,000 bitcoins which is approximately $3.5 million. CoinLab is also claiming $3.5 million in delay damages. The court cases are expected to drag for a long time, and Fortress Investment Group, New York, is optimistic that creditors will sell them.
About Fortress Investment Group
It’s a leading global investment manager that has over $49 million in assets. The company’s headquarters is based in New York, and the firm has approximately 845 employees. Go Here for related Information.