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Mt Gox Bitcoin Creditor Plans To File Lawsuit But There’s A Catch

Published

5 months ago

August 2, 2024

A recent post on the Mt. Gox insolvency subreddit has sparked significant controversy and backlash among community members. The original poster (OP) detailed their intention to filed a lawsuit after discovering that their claims for Bitcoin (BTC) held on the defunct exchange might be void due to non-response to creditor notifications. Moreover, other creditors were quick to offer their opinion on the potential lawsuit against Mt. Gox

Mt. Gox Creditor To Sue Defunct Exchange?

Mt. Gox, once the world’s largest Bitcoin exchange, filed for bankruptcy in 2014 after losing approximately 850,000 Bitcoin. A significant portion of this BTC stash belonged to its users. The exchange cited hacking and poor management as the primary causes of the loss. Since then, creditors have been embroiled in lengthy legal proceedings, seeking to recover their funds.

The OP, who mined Bitcoin on a laptop in the early days of the cryptocurrency, stated they had a small balance on Mt. Gox at the time of its collapse. Having largely checked out of the crypto scene since 2011-2013, the OP was unaware of the ongoing creditor processes.

However, they recently discovered emails from the Mt. Gox insolvency team. This included a 2019 email containing a creditor number. Nonetheless, Mt. Gox is reportedly claiming that the OP has waived their right to recover their funds due to a lack of response.

The OP expressed frustration over the situation, arguing that the notices, some of which were in Japanese, were insufficient. He also cited the high volume of spam and scam emails related to the cryptocurrency industry.

They described the situation as “insane” and sought recommendations for a lawyer to help take legal action. The OP acknowledged that legal fees would consume a substantial portion of any recovered funds but chose to forward. However, they were met with heavy backlash from other creditors.

Community Backlash

The criticism was both direct and scathing, with many accusing the OP of negligence for failing to follow the Mt. Gox creditor process. One user highlighted the lengthy duration since the bankruptcy. They emphasized that “it has now been more than 10 years since the bankruptcy.”

They noted that all communications from Mt. Gox were sent in both Japanese and English and some paper letters were also mailed to the registered address. The user bluntly stated, “It is your own fault that you did not take care of it in time.”

Another user echoed this sentiment, noting that “not a single one of those emails was Japanese only, they all had English translations of the full body included.” This user suggested that the OP’s lack of action was solely their responsibility and that the existing Bitcoin had already been distributed.

Additional responses were equally critical. One user remarked, “No, it’s not insane and the rest of us managed to do it just fine. You effed up and get nothing. Deal with it.” Moreover, a user pointed out the futility of seeking legal help at this stage. They suggested that a lawyer would merely “take your money to tell you the same thing.”

In addition, they emphasized that Mt. Gox did what was required to notify potential creditors. Hence, the OP’s failure to respond in a timely manner left them without recourse. The harshest criticism came from a user who stated:

“You can’t just wait through distribution and then ask everyone to return what they got back into the pot so that you can have a slice of the pie.”

While these comments could demotivate the OP, they might still pursue legal action. Responding to the criticism, they wrote, “Well y’all are a helpful lot. If you want to pass judgment, go ahead. But show some reading comprehension and answer the posted question.”