The Fight to Return “Stolen” Mt. Gox Funds to Victims
Actor and cryptocurrency advocate Brock Pierce explained the goals and challenges facing ‘Gox Rising’, an initiative to return Mt.Gox victims their stolen investments in an interview with TechCrunch, February 7, 2019.
What happened with Mt.Gox?
In 2014, bitcoin was highly dependent on Mt. Gox as the exchange handled more than 70 percent of all bitcoin transactions. Unfortunately, a serious security breach caused thousands of people to lose their bitcoins. More than 850,00 bitcoins were stolen, which amounted to more than $450 million at the time.
As a result, the value of bitcoin took a significant hit, leaving one of the earliest black-marks on the crypto’s reputation, after which trading with cryptocurrencies was forever deemed the most volatile and risky type of investment.
After the security breach, Mt.Gox suspended all action on its website and immediately filed for bankruptcy. Currently, the company is legally tied up in Japan in a court-appointed bankruptcy rehabilitation program.
Brock Pierce’s Revival Plan
Right after the Mt.Gox crash, crypto-celebrity and actor Brock Price tried to acquire the bankrupt exchange, however, this was impossible due to legal setbacks.
Nowadays Pierce is participating in Gox Rising Limited; the organization’s main mission is to, “support creditors of the Mt. Gox Estate in maximizing their recoveries and to relaunch the defunct Mt. Gox Exchange.”
Gox Rising is going to find out where the remaining stolen bitcoins are in order to rightfully restore them to their owners. Of course, the bitcoins will have to be reevaluated to the current rates, however, this will bring some justice to the victims of the Mt.Gox theft, and will also clear the path for the revival of the exchange should consumers have a renewed faith in the tarnished exchange.
Another important goal for Gox Rising is to slowly get Mt.Gox out of the legal mess it is currently in, as well as reviving the exchange to its former glory. According to the website:
“…the new exchange seeks to create significant additional economic benefits for participating creditors in order to take them further towards full recovery of their claims.”
In his interview, Pierce compared Mt.Gox to the last season of Game of Thrones, saying “it has not been written yet.” Gox Rising is an opportunity to revive a company that had the right ideas but lacked the experience and foresight to implement enough security measures for the volume of transactions it processed.