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Mt Gox Creditor Advocate Steps Down, Admits Payouts Could Take Years

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Andy Pag, the founder of Mt Gox Legal, has told CoinDesk that he is stepping down from his role as lead Mt Gox creditor advocate, and is resigned to the fact that payouts from ongoing legal proceedings could take many more years to happen.

Mt Gox Legal was founded 18 months ago to support the reimbursement of creditors. Originally, the group was optimistic about payments, predicting it could happen by the end of the year. However, because of the unexpected price increase in Bitcoin between 2014 to 2017, the Mt Gox case changed from a bankruptcy proceeding to a civil rehabilitation process, which continues to this day.

The Tokyo District Court announced the process in June 2018 and claimants expected a smooth process. However, an ex partner of Mt Gox, Coinlab, sued MtGox for USD 75 million, and its claims continue to complicate matters for individual claimants. Pag explained:

“Because it’s pending and it’s still disputed, the trustee can’t attribute fair voting rights if it’s accepted or zero voting rights if it’s rejected but … until it’s [resolved] the trustee can’t give them voting rights … It looks like it’s stalled.”

Pag formerly headed the biggest organization of creditor groups representing Mt Gox users who lost funds in Bitcoin when the Japan-based exchange was allegedly hacked in 2014, leading to its collapse. He has now quit, citing a protracted litigation process that has now entered its fifth year. Last month, Mt Gox founder Mark Karpeles was found guilty by Japanese courts of manipulation of data, but escaped jail time.


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