Mt. Gox may need two more years before it can repay its creditors

09 Apr, 2019
by Richard Allen
Mt. Gox may need two more years before it can repay its creditors

Andy Pag, leader of the group representing the victims of the defunct exchange Mt. Gox has announced he’s stepping down from his post.

In an interview with CoinDesk, Pag stated he's resigning in the midst of a “protracted legal quagmire that could take years to resolve.”

During the interview, Pag revealed that he now believes ongoing legal issues –  particularly a single $16 billion claim by startup incubator and former Mt. Gox partner, Coinlab – may hold up the exchange’s civil rehabilitation for two more years, maybe even longer.

In his full statement, Pag commented: “My opinion is that we’ll be lucky if assessment takes six months, there’s just one round of litigation which takes [nine to 12 months], and CR [civil rehabilitation] takes another [three to six months].”

“My feeling is the best case is [18 to 24 months], but I suspect it will be longer. Of course, I’m guessing here too. Truth is, no one knows,” he continued.

Pag states he’s selling his claim to the highest bidder, claiming one person has offered him $600 per Bitcoin. However, his statement doesn’t disclose the total amount of BTC up for sale.

Things were beginning to look up for the Mt. Gox victims, as the exchange stated recently it was finally ready to begin repaying creditors five years after it was hacked. However, if Pag is correct, the Mt. Gox debacle still has a ways to go.

Read more: Mt. Gox creditors are one step closer to receiving 141,000 BTC

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