Brock Peirce, former Mighty Duck and current Bitcoin foundation director, recently threw down the gauntlet (or should that be hockey puck?) announcing that he is looking to revive failed exchange, Mt.Gox. However, it's looking unlikely that Japanese regulators will give the go ahead…
Regulatory authorities in Japan are pickier than ever, especially when it comes to cryptocurrency exchanges. Following the Coincheck debacle in January 2018, in which the Japanese exchange was ransacked of $30 million worth of crypto, The financial regulatory authority (FSA) has clamped down on such ventures, taking a more discerning approach to granting licenses.
Pierce recently put in a bid to revive Mt.Gox, which still owes creditors hundreds of millions in compensation.
The former child star stated that his investment group Sunlot Holdings already has a 12% stake in Mt.Gox, buying it for just 1 BTC back in 2014. Now Peirce wants to track down remaining assets - lost when the exchange went down - have them valued, and pay back all creditors; with hopes to subsequently reinstate the exchange and even launch a token, dubbed GoxCoin which would allow creators a share in the new Mt.Gox.
A long road ahead
Pierce is facing a multitude of bureaucracy in order to attain these goals. First requiring over half of all creditors to sign a petition to get him on the creditors' committee.
And this isn’t the only obstacle, even if Peirce manages to drum up that much support he still has to battle the FSA for a license to revive one of the most infamous crypto exchanges in the world.
However, the regulator recently granted its first cryptocurrency exchange license in over a year, giving Coincheck the go-ahead – as ironic as that seems.
Main takeaways from Coincheck press conf:— Yuji Nakamura (@ynakamura56) January 26, 2018
- only NEM impacted
- plans to continue operating, restart trading
- not clear on plan to repay customers
- no multisig💀
- wouldn’t admit security was weak
- not sure how hacked, if domestic or foreign hackers
- CEO barely spoke
Though, one thing Coincheck has going for it that Mt.Gox doesn’t is that it is (currently) lawsuit-free…
As reported, Mt.Gox is currently undergoing a $16 million dollar lawsuit after CoinLab litigated against the failed exchange, for a breach of a takeover contract, the takeover was never initiated due to the collapse of the exchange.
This lawsuit isn’t actually against the exchange, but rather the creditors (as if they haven’t been through enough).
If CoinLab wins, creditors may be instructed to settle the lawsuit using the $1.2 billion in funds owed to them as per the Mt.Gox bankruptcy proceedings.
This lawsuit combined with the already scrupulous eye of the FSA may keep Peirce waiting longer than he anticipated.
Either way, this is the weirdest sequel to the Mighty Ducks anyone could have hoped for…