Here is a better idea: Just refund people their money. It isn't yours to mess around with. Divide what is left by the number of users and the amount they held and give them a prorated portion of it back. Any MT GOX revival should be required to carry the rest of the debt into the new venture and pay it back in regular installments with interest.
Why in the world do they insist on playing games with this?
Topic: Analysis of Sunlot deal for Mt. Gox by a lawyer - the "screw the customers" plan (Read 1175 times)
June 09, 2014, 07:19:31 PM
June 02, 2014, 02:53:22 PM
There's a useful analysis of the Sunlot/Mt. Gox deal available. Key points:
First, there is a “lock-up period” of one year following the Initial Distribution. Customers will immediately get their pro rata share of the 200,000 bitcoins comprising the Initial Distribution, however, the bitcoins they receive cannot be cashed out or otherwise transacted during the first year.
And, the fall-back exactly is in case New Gox isn't around for one year......First, there is a “lock-up period” of one year following the Initial Distribution. Customers will immediately get their pro rata share of the 200,000 bitcoins comprising the Initial Distribution, however, the bitcoins they receive cannot be cashed out or otherwise transacted during the first year.
(recipe for disaster)
May 24, 2014, 12:02:05 PM
i would rather hope and wait one year --- than see so many lose all the fiat and coin immediately
why not roll the dice ?
It is true to newbies n peeps coming back mtgox is recognizable --
yes us elite know better (and yes its ridiculous that I allowed my money to stay in mt gox -- but I actually wasn't able to do anything -- We were all kinda stuck …. )
but for the good of all ?
doesn't anyone see the negative side of liquidation ??
why not roll the dice ?
It is true to newbies n peeps coming back mtgox is recognizable --
yes us elite know better (and yes its ridiculous that I allowed my money to stay in mt gox -- but I actually wasn't able to do anything -- We were all kinda stuck …. )
but for the good of all ?
doesn't anyone see the negative side of liquidation ??
May 18, 2014, 09:31:27 AM
I was lucky enough not to have money tied up in Gox, but if I did I would be very skeptical of this Sunlot plan.
May 16, 2014, 02:18:29 PM
Exactly like they had before, when they couldn't get any money out. I wonder if the new BTC price at the new Gox will be inflated like it was for so long because no one can cash out, haha. Well, I guess new people could hypothetically cash out? But who would be dumb enough to give the new Gox their business?
May 16, 2014, 12:42:22 AM
There's a useful analysis of the Sunlot/Mt. Gox deal available. Key points:
"According to the March 28 Plan, Sunlot’s acquisition plan centers on a transfer of Tibanne KK, a Japanese corporation that owns 88 percent of Mt. Gox. KK, which is the subsidiary, actually operated the exchange." Now that's interesting. Tibanne isn't in bankruptcy, which means that Karpeles is still involved in some way.
Importantly, it should be noted that contrary to what has been reported in the media, customers will not automatically receive an actual interest in New Mt. Gox, but rather will be treated “as if they hold … a stake in New Mt. Gox” and will receive their proportional, potential upside accordingly, but they will not automatically be equity holders of New Mt. Gox. Uh oh.
Now, here's the really important part: the "screw the customers" plan.
Incentivization doesn’t always work to retain customers, so there are provisions in the March 28 Reorganization Plan that would have limited customers “getting out” once they receive distributions.
First, there is a “lock-up period” of one year following the Initial Distribution. Customers will immediately get their pro rata share of the 200,000 bitcoins comprising the Initial Distribution, however, the bitcoins they receive cannot be cashed out or otherwise transacted during the first year.
Second, the Sunlot reorganization plan contains prohibitions on customers cashing out their quarterly distributions from a commission trust account to be established (to continue to make customers whole after the Initial Distribution) until one year has lapsed after receipt of such distributions. In other words, if a customer receives a distribution from this trust account, that customer cannot immediately withdraw the distribution in cash. So under the March 28 Reorganization Plan there would be no early exit for Mt. Gox customers.
That is, unless a customer wanted to sell New Mt. Gox his/her claims. In that case, the March 28 Reorganization Plan provides pre-determined customer claims buyout discounts ranging from 50 percent to 80 percent of the claim value. Under the March 28 Reorganization Plan, if you want to cash out in the first year following consummation of the deal, you have to sell New Mt. Gox your claim at 50 percent of the claim value.
So that's the current plan. Customers don't get real Bitcoins or real money. They just get New Goxcoins and New Goxbucks.
Meet the new slimeball, same as the old slimeball.
"According to the March 28 Plan, Sunlot’s acquisition plan centers on a transfer of Tibanne KK, a Japanese corporation that owns 88 percent of Mt. Gox. KK, which is the subsidiary, actually operated the exchange." Now that's interesting. Tibanne isn't in bankruptcy, which means that Karpeles is still involved in some way.
Importantly, it should be noted that contrary to what has been reported in the media, customers will not automatically receive an actual interest in New Mt. Gox, but rather will be treated “as if they hold … a stake in New Mt. Gox” and will receive their proportional, potential upside accordingly, but they will not automatically be equity holders of New Mt. Gox. Uh oh.
Now, here's the really important part: the "screw the customers" plan.
Incentivization doesn’t always work to retain customers, so there are provisions in the March 28 Reorganization Plan that would have limited customers “getting out” once they receive distributions.
First, there is a “lock-up period” of one year following the Initial Distribution. Customers will immediately get their pro rata share of the 200,000 bitcoins comprising the Initial Distribution, however, the bitcoins they receive cannot be cashed out or otherwise transacted during the first year.
Second, the Sunlot reorganization plan contains prohibitions on customers cashing out their quarterly distributions from a commission trust account to be established (to continue to make customers whole after the Initial Distribution) until one year has lapsed after receipt of such distributions. In other words, if a customer receives a distribution from this trust account, that customer cannot immediately withdraw the distribution in cash. So under the March 28 Reorganization Plan there would be no early exit for Mt. Gox customers.
That is, unless a customer wanted to sell New Mt. Gox his/her claims. In that case, the March 28 Reorganization Plan provides pre-determined customer claims buyout discounts ranging from 50 percent to 80 percent of the claim value. Under the March 28 Reorganization Plan, if you want to cash out in the first year following consummation of the deal, you have to sell New Mt. Gox your claim at 50 percent of the claim value.
So that's the current plan. Customers don't get real Bitcoins or real money. They just get New Goxcoins and New Goxbucks.
Meet the new slimeball, same as the old slimeball.
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