Mt Gox, first solvent, bankrupt Bitcoin Company

Samarkand

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Quote from: marky89 on December 12, 2017, 05:22:27 PM

... You might get some $$ value back in bankruptcy/reorganization, but those bitcoins can't be replaced.

Usually, you only get a fraction of the owed $ amount back in the case of a bankruptcy.

Mtgox is a really interesting case. I think it is unprecedented in the history of bankruptcy law that an insolvent
company owned assets that have appreciated in value as much as the BTC stash of Mtgox did.
Therefore I´m highly curious how this will play out.

marky89

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Quote from: Syke on December 12, 2017, 04:49:31 PM

No they can't. They owe me bitcoins, not dollars.

After being screwed by several exchanges over the years, I can sympathize. But under the law, that's not true. Fiat currency generally must be accepted as payment for debts. Technically, that's what fiat currency means: currency "by decree." Not being familiar with the Japanese language, I can't point to the exact law, but it has parallels with all major fiat currencies. This is what the US Treasury says about credit obligations vis-a-vis the dollar:

Quote

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor.

As a creditor, you have no choice but to accept fiat currency. This is why it's so incredibly important to control your own keys. If Coinbase gets hacked, those coins are gone forever. You might get some $$ value back in bankruptcy/reorganization, but those bitcoins can't be replaced.

Syke

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Quote from: iamTom123 on November 14, 2017, 04:05:14 AM

it turned out that the assets available can cover the liabilities due to the rise of the cryptocurrency value as years passed by.

No they can't. They owe me bitcoins, not dollars.

iamTom123

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Quote from: bitjoin on November 13, 2017, 10:56:25 AM

Quote from: WolfofBitcoin on November 13, 2017, 10:53:52 AM

Aren't the assets of Mt Gox more valuable than the liabilities? As it sat in bankruptcy court, it actually became solvent and very valuable!?

They were solvent at like $2.5k bitcoin price. We've had BCH and BTG and Byteballs and extra price of regular bitcoin. Mtgox has so much money the creditors are now fighting that they get it all and rightly so.

I have read the news about the latest development in the Mt.Gox case. We are all wishing that people who got their money stuck in there can get it as soon as possible since it turned out that the assets available can cover the liabilities due to the rise of the cryptocurrency value as years passed by. I am seeing a good settlement on this matter in matter of months if the court or those who are in charged can make things done fast as it should really be. It is just ironic that Mt.Gox was based in Japan and became one of the most important instrument for the spread of Bitcoin and now we are seeing Japan leading the Bitcoin market with open arms.

bitjoin

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Quote from: WolfofBitcoin on November 13, 2017, 10:53:52 AM

Aren't the assets of Mt Gox more valuable than the liabilities? As it sat in bankruptcy court, it actually became solvent and very valuable!?

They were solvent at like $2.5k bitcoin price. We've had BCH and BTG and Byteballs and extra price of regular bitcoin. Mtgox has so much money the creditors are now fighting that they get it all and rightly so.

WolfofBitcoin

newbie

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Aren't the assets of Mt Gox more valuable than the liabilities? As it sat in bankruptcy court, it actually became solvent and very valuable!?

Topic: Mt Gox, first solvent, bankrupt Bitcoin Company (Read 412 times)