Between the years 2011 and 2013 Mt.Gox which is a cryptocurrency exchange lost 850,000 BTC it had stored for clients. If we look at the lost Bitcoins, they would be worth $2.5billion today. In the year 2014 Japanese government started investigating the case of Mt.Gox since the country had filed for bankruptcy. The former CEO of Mt.Gox Mark Karpeles was investigated as clients were promised compensation from the recovered 202,000 Bitcoins.
The compensation plan has not been received well. This is because the clients are being compensated with the rice of 4years ago yet the current price is so high. There a lot of cases in court with the creditors of Mt.Gox who are carrying out the bankruptcy process. This is because there are still investigations on Mt.Gox and Karpeles. People are still suing to be compensated with the available 202,000 Bitcoins.
Kerpeles ICO plan
Karpeles has gone against the creditors stating that he will pay the least amount possible and keep the majority of the 202,000 Bitcoins. In a blog post, Karpeles stated that: “The bankruptcy of Mt.Gox would have been boring and a long process. The length is because of many creditors who range about 24,750 people. Some of these people were actually rejected by the trustee CoinLab but want to be part of the share. The truth is that part of the assets of Mt.Gox by the time it entered liquidation included 202,000 Bitcoins. This coins now have a higher value than the time the company started the liquidation process.”
Kerpeles has introduced a plan to conduct an ICO tO collect $245 million in order to receive Mt.Gox. The ICO plan does not look too logical and is highly inflated. This is because Korbit a very large cryptocurrency exchange company was received for only $410 million by $10 billion giant Nexon.
It’s also funny that Kerpeles wants more capital than the entire market value of a very established cryptocurrency company. The idea of launching an ICO to receive Mt.Gox shows his incompetence and not having knowledge in ERC token.
Contrary to most believe that ERC20 tokens not made for organizations to make quick money it’s even not a money generating tool. Actually, Mt. Gox does not need its own cryptocurrency just like others like Coinbase which do not have their own currencies. But according to Kerpeles: “The ICO launch is raising money to receive Mt.Gox.In the circumstances that there is no enough raised the company would be locked and then distributed to creditors which would be better than nothing.”