In 2013, Coinlab sued Mt.Gox for $75 million for breach of contract. Coinlab alleged that Mt.Gox continued to market to North American customers and did not provide Coinlab with the data and service access it needed to fulfill the terms of the agreement. Later in 2013, Mt.Gox countersued Coinlab for not being able to lawfully operate as its partner in the US.
In 2017, several Mt.Gox creditors filed a petition for the commencement of civil rehabilitation proceedings against Mt. Gox. with the Tokyo District Court. A judge approved the petition in 2018 and stayed the previously ongoing bankruptcy proceedings
When Mt. Gox first filed for bankruptcy, creditors filed claims as to how much they should receive in recompense. Coinlab originally claimed $75 million, the amount they had previously sued Mt. Gox for in 2013 for breach of contract. However, when civil rehabilitation proceedings commenced, creditors had to refile their claims. All other creditors refiled for their original claims except Coinlab, which reportedly increased its claim from $75 million to $16 billion. Creditors will be reportedly unable to vote on a civil rehabilitation plan until Coinlab’s claim is assessed by a bankruptcy judge, delaying the proceedings indefinitely.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.