Though the infamous Mt. Gox hack of $2.21 billion in Bitcoin happened four years ago, the now-defunct crypto exchange is still making headlines. The exchange finds itself in the spotlight once again as its former CEO, Mark Karpeles, recently stated that he does not want the 160,000 BTC he would receive after the exchange finishes repaying its creditors.
Bankruptcy law to give Mt. Gox $1 billion
During a Reddit Ask Me Anything session on Wednesday, Mark Karpeles explained how Japanese bankruptcy procedures would result in Mt. Gox shareholders receiving Bitcoin funds. According to Japanese law, once creditors are reimbursed, all remaining assets are “distributed to shareholders as part of the liquidation.” Due to the fact that Mt. Gox users will most likely be compensated in Japanese yen, Karpeles is expected to receive leftover funds.
Karpeles expressed his discontent with the potential outcome, saying that he does not want to reap the benefit of “160,000 Bitcoin and Bitcoin Cash,” currently valued at $1 billion:
“I don’t want this. I don’t want this billion dollars. From day one I never expected to receive anything from this bankruptcy. The fact that today this is a possibility is an aberration and I believe it is my responsibility to make sure it doesn’t happen.”
In addition, Karpeles offered a formal apology and highlighted efforts to implement a “civil rehabilitation” plan that would allow creditors to be reimbursed in Bitcoin.
Bitcoin users fear selloff
Karpeles’ comments come almost a month after news emerged that Mt. Gox trustee Nobuaki Kobayashi has sold off approximately $400 million worth of Bitcoin and Bitcoin Cash since September 2017. Many attribute this year’s steep market decline to his most recent sale. According to Bloomberg, Kobayashi admitted he still has about $1.9 billion worth in crypto to liquidate.
Given that another major selloff has the potential to drive prices down even further, Kobayashi has come under fire for his liquidation approach. In regards to the crypto currently in his possession, Kobayashi said he plans to consult with bankruptcy court to determine the further sale of Bitcoin and Bitcoin Cash.