Former Mt. Gox CEO Claims Rehabilitation Plan Better for Creditors Than Class Lawsuit

Mark Karpeles was pushing back at a motion for class certification in a lawsuit brought by a former Mt. Gox user.

AccessTimeIconMar 11, 2021 at 11:55 a.m. UTC
Updated Sep 14, 2021 at 12:24 p.m. UTC

The CEO of Mt. Gox has opposed a motion for class certification in a lawsuit brought by one of the collapsed exchange's former users on the basis that the draft rehabilitation plan more beneficial to them.

A supplement filed by Mark Karpeles' attorneys on Tuesday states that under the draft rehabilitation plan, Mt. Gox creditors will be paid in a combination of bitcoin, bitcoin cash and yen according to their present value.

Gregory Greene, for example, the plaintiff suing Karpeles for fraud and negligence, would currently receive the equivalent of $347,083 from 6.33 BTC, 6.33 BCH and over 2.4 million yen, according to a calculator set up on a blog to aid creditors.

Greene has been claiming for the value of the crypto and fiat held in Mt. Gox when the exchange was hacked and went offline in 2014, which was worth around $25,000. Karpeles' attorneys note the yen alone Greene would receive under the rehabilitation plan is currently worth over $22,000.

They conclude that a class action would not be "the superior method to address these claims" in contrast to the rehabilitation plan which Mt. Gox creditors will soon be able to vote on and recover their losses through the Tokyo District Court's proceedings.

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