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Mt. Gox: CoinLab is one of the main reasons for holding up the bankruptcy proceedings, says Andy Pag




Mt. Gox: CoinLab is one of the main reasons for holding up the bankruptcy proceedings, says Andy Pag
Source: Unsplash

In an interview with Peter McCormack, Andy Pag, a former administrator of Mt. Gox Legal, spoke about the reason it would take a long time for the Mt. Gox’s civil rehabilitation process to settle.

Andy Pag called it quits over the uncertainty caused by CoinLab’s $16 billion claims, which he stated could take anywhere between 24 months to two years to be settled. He stated that CoinLab was currently in the reassessment process, where the Trustee, Nobuaki Kobayashi, personally goes through its claims. However, if the Trustee decides to reject it, CoinLab can take this case to a judge under bankruptcy proceedings. He added,

“CoinLab makes a submission to the judge saying, ‘well this is why we should have our claim accepted’ and the Trustee looks at that over a period of time. The trustee then replies ‘well, this is why its absolutely rubbish and they shouldn’t have it’ and then CoinLab gets it […] it goes backward and forwards until everybody is satisfied and the judge makes a ruling”

This was followed by Pag stating that they were “presumably” arguing over the same legal points, adding that this process was ongoing for four years. He also stated that even back then, CoinLab was one of the main reasons for holding up the bankruptcy proceedings. He went on to state,

“[…] we’ve already done four years of this. Now, the trustee said at the meeting we’re not gonna start from the beginning because we’ve already done that so we’re underway. My view is based on having spoken to our lawyers; they said, ‘well, you know, [it] can take two months, it could take six months, you know actually who knows […]”

The former administrator further stated that CoinLab requested the court to seal all the paperwork with regard to these submissions. He stated that because of this, no one could gain access to the files, learn the arguments made by either of the parties, and conclude the duration this case could take to settle. Pag added,

“[…] we’ve got no way of really judging what stage this is at, what merits the legal arguments that are being made, are being submitted. we’re completely in the dark. there’s a really really frustrating process. […] we’ve made a request to a lawyer that they unseal those papers but actually we don’t have any standing really to do that […]

He further added that according to Mark Karpeles, the CEO of Mt. Gox during its collapse, this process could take up to a year. And, if the claim was rejected at the end, CoinLab could move towards litigation, where they could argue about their rights over the assets in a courtroom, rather than through written submissions. CoinLab would also have to pay court fees of around $75 million, Pag added. He said,

“[…] in Japan, I sat down with the lawyers and we did the calculation a lot more accurately and what I’ve realized is that for very little money for about $400,000 to $500,000, they can probably still put in a claim maybe not $16 billion but around $1 billion or $2 billion; that is still big enough to hold the process up […]”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Binance Chain’s first project Mithril to launch with MITH/USDT trading pair

Namrata Shukla



Binance Chain's adds Mithril as its first project followed by MITH/USDT trading pair
Source: Pixabay

Binance launched its blockchain protocol on April 18 and it already has its first project launch on its network. Mithril, a decentralized social media platform will migrate to Binance Chain. The company’s MITH token, that ranks 121st on CoinMarketCap will transfer from ERC20 to Binance’s BEP2 standard.

Binance Chain has been a highly anticipated project in the crypto world since its announcement and with its launch, the community provided ample support to the move. According to reports, Binance is luring companies into migrating to their new native chain and leave Ethereum.

According to Mithril’s blog post, the migration commenced after the mainnet launch of the Binance Chain and informed the MITH holders that the deposit and withdrawals on will be halted for the initial 12-hour migration period, however, trading will continue. The post added:

“Once the initial migration of ERC20-based MITH to BEP2 MITH is complete, Binance users will be able to withdraw MITH to BEP2 wallets, such as the Ledger Nano S, and begin trading on Binance DEX. ERC20 versions of MITH held in private ETH wallets or on other exchanges will not be impacted.”

As Mithril announced about its migration to Binance chain, the price of MITH, Mithril’s native coin saw a surge. The coin also saw a 70% hike,  followed by a market correction. At press time, MITH was valued at $0.0782 with a market cap of $40 million. The 24-hour trading volume of the coin was $108 million as it pumped by 67.10% over the past day. In the past seven days, the coin noted a surge of a massive 81.47%, which started to dip by 0.84% over the past hour.

Following the addition of the project, Binance announced the listing of MITH/USDT trading pair, which will start trading on April 19, 10 AM UTC.

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