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Mt. Gox victims receive compensation offer of $1,300 per Bitcoin (BTC)

  • The Fortress Investment Group has made an offer to the victims of the Mt. Gox hack to compensate them for the funds stolen from the exchange with USD 1,300 for one Bitcoin.
  • The victims must respond to the offer from the investment company. However, if they accept the offer, they will only receive the equivalent of 88% of the value of Bitcoin right now.

The victims of the Mt. Gox hack crypto exchange have been offered compensation. The private equity and hedge fund company Fortress sent a proposal to the victims and offered to replace a part of the stolen funds. However, only $1,300 would be paid for one Bitcoin (BTC). The victims will have to respond. However, if they give their consent, they will agree to receive the funds at 88% of the value Bitcoin has at the time of publication.

The news portal Bloomberg received the document with the offer. In addition, it is known that Fortress has made a similar offer in the past, but with a Bitcoin price of $755 and an even lower offer of $600 in March 2019. The offers seem to change with the fluctuations of the Bitcoin price.

Complications in the Mt. Gox case

The Mt. Gox hack is one of the most notorious in the crypto space. The Tokyo based exchange was one of the most important crypto exchanges in the early stages of the Bitcoin market. In its prime it processed almost 70 % of all Bitcoin transactions around the world. The exchange came under attack in 2014. Hackers managed to exploit a security vulnerability and steal more than 850,000 BTC.

According to the price of Bitcoin at that time, the attackers stole an approximate amount of 450 million dollars. The attack resulted in the closing of the exchange. The company had to ask for the protection of its investors and started a liquidation process. Although it was able to recover 140,000 BTC, the exchange faced legal action and never recovered.

Probably the most affected have been the investors who lost their funds. In October 2019 the Tokyo District Court approved a postponement of the deadline for the implementation of the victim compensation scheme. The extension was approved for March 31, 2020. This is just one of many extensions that have been made.

Therefore, the victims have waited a long time to receive a response for their lost funds. Fortress’ offer could close this chapter if victims decide to stop waiting for a response that could continue beyond March this year, if another extension is approved.

In addition to the legal complications and lack of transparency from the former owner of Mt. Gox, Mark Karpeles, the victims have not received compensation due to the increase in the price of BTC. Those affected by the hacking claim losses of about $2 trillion. During subsequent investigations, only 140,000 BTC were recovered. The amount is insufficient to restore the funds of the 127,000 creditors who claim to have been victims of the hack to Mt. Gox.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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