Mt Gox traders agree to settle class actions against bankrupt Bitcoin exchange
Bitcoin traders and investors from the US and Canada have agreed to drop the class-action lawsuits they have hurled against Mt Gox in return for a 16.5% interest in the bankrupt exchange and the return of its remaining digital currency. The investors said they will back Sunlot Holdings' plan to purchase Mt Gox, according to The Register.
The investors' US court failing said: "The proposed settlement (and reorganization plan) now before the Court is a more than fair, reasonable and adequate result for the proposed settlement class and is well within the range of possible approval... Given its substantive terms, the relief provided to the class and exchange members globally, and the support of an international cast of interested parties, the Court should not hesitate to grant preliminary and ultimately, final approval to the deal."
Mt Gox had filed for bankruptcy protection in Japan and the US after reporting the loss of 850,000 Bitcoins, 750,000 of which are owned by its traders. These Bitcoins are worth more than $400 million. The investors then sued the exchange for the loss, saying they have not been adequately secured against such incident. Mt Gox later said it found 200,000 of the missing Bitcoins, the report detailed.
The proposed settlement calls for the recovered Bitcoins and other currencies to be distributed to the members of the exchange. They would then create a new exchange with the existing Mt Gox clients owning a 16.5% stake. The new exchange vowed to find out the cause of the Mt Gox collapse and try to recover the missing currency, the report explained.
Meanwhile, the settlement has yet to be approved by the US and Canada courts. Sunlot's acquisition of Mt Gox would also need approval from the bankruptcy court of Tokyo, The Register reported.