by CYRUS FARIVAR
Gregory Greene, the Illinois man who brought a proposed class-action lawsuit against Mt. Gox in the US, now says that he has come to a settlement agreement with two of the site’s principals and its potential buyer. The revelation comes from new court documents filed late Monday night.
Meanwhile, Mt. Gox still awaits word on its sale to that potential buyer. If approved by the Japanese court where the embattled Bitcoin exchange filed for bankruptcy in February 2014, Mt. Gox would be sold to a new company, Sunlot Holdings Limited.
In February 2014, Mt. Gox announced it lost 750,000 bitcoins belonging to its customers as well as 100,000 of its own bitcoins after weeks of DDOS attacks and “transaction malleability” problems. In total, Mt. Gox is estimated to have lost $468 million worth of bitcoins, prompting the exchange to file for bankruptcy protection in Japan and the United States. Shortly thereafter, the exchange halted all withdrawals, and plaintiffs in both Canada and the US suspected large-scale fraud and took legal action.
According to the terms of the proposed Greene US settlement, new owners Sunlot would assume all the assets and liabilities of Mt. Gox. Under the proposed deal, class action suits filed in the United States and Canada would be settled, but terms of the settlement from the sister case in Canada have not yet been filed.
According to a leaked confidential “proposed rehabilitation plan” filed with the Tokyo district court, published online last week, Sunlot describes itself as a “special-purpose investment vehicle registered in Republic of Cyprus” led by Brock Pierce and John Betts.
Sunlot’s leaked document mentions that the Freeh Group, a global risk management firm founded by former FBI director Louis Freeh, would lead “cooperation with forensic (digital) investigations.”
“The value we, the Sponsor Company, can bring to the business rehabilitation of Mt. Gox company is the specialized capabilities in the areas of management, finance, and technology as Bitcoin specialists, and it is precisely these that can overcome the current crisis, restart the exchange, and grow the business once again, thereby serving as a resource for the capacity to make payments to creditors,” Sunlot argues in its 33-page filing.
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