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Mt. Gox: CoinLab’s $16 billion claim seems to be a strategic approach to block civil rehabilitation proceedings




Mt. Gox: CoinLab's $16 billion claim looks like strategic approach to block civil rehabilitation proceedings
Source: Unsplash

Andy Pag, the Founder and Administrator of Mt. Gox Legal, was recently in the headlines for calling it quits on the on-going civil rehabilitation proceedings, owing to the claims made by CoinLab. Pag explained the reasons behind this decision, in an interview with WhatBitcoinDid’s Peter McCormack.

The discussion began with Andy Pag speaking about his trip to Tokyo for the creditors meeting, usually held every six months. He stated that there were a couple of “big things” that happened while he was in Japan, during the public meeting held by the Mt. Gox Trustee, Nobuaki Kobayashi. The Trustee announced that the civil rehabilitation proceedings would be put on hold until the CoinLab case was settled.

This was followed by Pag giving a brief background on the case. He stated that Mt. Gox was first under bankruptcy, which would have resulted in the shareholders gaining control of the firm’s assets. This, in turn, led to the creditors demanding a change of proceedings from bankruptcy to civil rehabilitation, which was later approved by the Tokyo District Court.

He stated that the initial timeline was such that the vote on the civil rehabilitation plan would have been held in April. He continued,

“[…] there is uncertainty in that process, we don’t know when it’s going to end, we don’t know how much the whole process is going to be worth for creditors with any certainty and so it was a frustration to find out that that wasn’t going to happen in April. But, what was more concerning is the reason for that is that there is this case brought by CoinLab”

Pag further stated that CoinLab had an agreement with Mt. Gox back in 2013, which was essentially to be the franchise for Mt. Gox in the United States. However, this agreement fell apart, and led to a lawsuit between CoinLab and Mt. Gox, before the collapse of the infamous Bitcoin exchange. He said,

“That lawsuit has mutated into a claim in the bankruptcy process. So back in 2014, CoinLab put in a 75 million dollar claim against Mt Gox. So, along with all the people that lost money on the exchange they were also saying to the Trustee, ‘you need to give us 75 million because that’s what this contract was worth’.”

The former administrator further stated that the case of whether CoinLab was entitled to the $75 million wasn’t settled during the bankruptcy proceedings. When the case became a civil rehabilitation one, everyone had to resubmit their claims, including CoinLab, he said. He continued,

“Between 2014 and and last year their claims had somehow grown from 75 million to 16 billion dollars. So, they are claiming $16 billion. there’s in my eyes no earthly reason how you can calculate the damages of this and come up with a number $16 billion […] it doesn’t make sense.”

Pag went on to state that according to him and a lot of creditors, this $16 billion claim looked “very much” like a “strategic approach” through which CoinLab was trying to block the civil rehabilitation proceedings. They’ve “unfortunately” been successful at it, he concluded.

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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.

Bitcoin Cash

Bitcoin SV’s Craig Wright withdraws email evidence submitted to court as he could not verify date of email exchange





Bitcoin SV's Craig Wright withdraws email evidence submitted to court as he could not verify date of exchange
Source: Unsplash

Craig Wright, the self-proclaimed Satoshi Nakamoto, has been in the limelight for the past few days. Apart from the news surrounding a lawsuit over a defamation case, Wright also made headlines due to the news pertaining to the Dave Kleiman case.

Earlier this week, a Reddit user stated in a post that Wright “purposely” submitted a fake email as evidence to the court for the Kleiman -Wright lawsuit. The lawsuit alleges that Wright had stolen $1 million Bitcoin from Dave Kleiman after his death, and Wright was being sued for billions of dollars.

The Redditor had stated,

“Craig Wright’s fraud continues. Yesterday, he submitted into evidence an email he says was from Dave Kleiman to Uyen Nguyen asking her to be a director of his ‘bitcoin company’ in late 2012. It is provably fake. Craig didn’t realize that the email’s PGP signature includes a signing timestamp along with the ID of the key used as metadata.”

Source: Reddit

Source: Reddit

Apart from this, it was also pointed out that the spelling “Kleiman” was misspelled in the letter, as the from address spelled it “Klieman”. Now, according to a new court document, Wright has withdrawn this evidence by stating that he cannot verify the date of the email exchange.

The court letter said,

“Dr. Craig Wright respectfully notifies the Court that he withdraws Exhibit A to his Motion for Judgement on the Pleadings for Lack of Subject-Matter Jurisdiction […] Wright is not withdrawing the motion and maintains that this Court lacks subject-matter jurisdiction over this action”

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