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Mt. Gox settles class-action lawsuit by turning customer creditors into owners

Michael Gorman, @Numeson
April 29, 2014
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More good news for those who entrusted Bitcoin exchange Mt. Gox with their cryptocurrency. After filing for bankruptcy earlier this year, Mt. Gox found some 200,000 Bitcoins last month, and today it has tentatively settled its class-action lawsuit in the US. In exchange for dropping the case, customers will become part owners in the new Mt. Gox -- a group of investors is set to purchase and revive the failed exchange -- to the tune of 16.5 percent. Additionally, class members get to split up those rediscovered Bitcoins and another $20 million currently being held by Mt. Gox's bankruptcy administrator. The settlement, naturally, is contingent upon both the US court agreeing to the terms and a Japanese bankruptcy court approving the deal for Mt. Gox's sale. And, bear in mind that US beneficiaries of the settlement don't get priority over anyone else, nor do they get the full ownership stake in the new Mt. Gox. The settlement terms would apply to creditors throughout the world, and the benefits of the deal will be shared equally amongst them.

Mt. Gox is dead. Long live Mt. Gox.

[Image Credit: AP Photo/Shizuo Kambayashi]

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