MTGox launched its service in 2010, and MtGox was the world’s top-selling bitcoin exchange until its demise in 2014. By 2013, the Japan-based exchange conducted over 65 per cent of all Bitcoin trades worldwide. MTGox collapsed in 2014 after it was revealed that it had lost around 850,000 Bitcoins as a result of an alleged hacking attack.

This was a loss of about 7 percent of all bitcoins traded worldwide. Since then, the former customers of MTGox have regularly received offers from investment firms offering to buy the established claims against MTGox. One of these providers is Fortress Investment Group LLC.

In the case of these offers, it may be advisable to seek legal advice in order to have the contracts reviewed from a legal and economic point of view. The lawyers of the Herfurtner law firm will be happy to assist you in reviewing and implementing the contract. For a free initial consultation, please use our contact form.

MTGox Bitcoins

A legal review of the hacker attack at the crypto exchange MTGox in 2014 continues to progress. Nobuaki Kobayashi, who was appointed as trustee, announced that the process to decide on justified and unjustified compensation claims is nearing completion.

The deadline for submitting claims has been set for 15.12.2020. If you have traded Bitcoins via the crypto exchange MTGox, our lawyers will be happy to advise you on the existence of possible claims. These should be submitted to the Japanese trustee, if applicable.

Filing a claim

Filing an insolvency claim must be done directly with the Japanese trustee. In order to gain access to the insolvency estate, extensive information must be submitted to the trustee’s office. Information to be provided includes:

  • The amount of the claim
  • The damage caused by the delay
  • The total amount of the claim
  • The cause of action from which the claim arises

If you have any questions in connection with the filing of a claim, our attorneys are available to assist you with their expertise.

Receive compensation payments

MtGox has a substantial insolvency estate. In a September 2018 announcement, the Japanese trustee stated that over USD 140,000,000.00 is available for compensation. These are said to have been generated by the sale of secured Bitcoin (BTC) and Bitcoin Cash (BCH).

Creditors thus have the prospect of recovering at least parts of their original deposits.

Claims in connection with MTGox

Due to the considerable scope of MTGox’s insolvency, there are now a large number of different claims. Various parties have already appeared and acquired insolvency claims from aggrieved parties.

In the event that you too have received offers in connection with MTGox, you can have them examined by the lawyers of Herfurtner Attorneys at Law with regard to their legality and economic viability.

MTGox payout

Due to the current uncertainties regarding the actual payout amount, more and more investment firms are offering to buy the claims of claim holders. Of course, the purchase price in these cases does not correspond to the actual established value of the claim.

Rather, these offers are based on the assumption that the trustee still holds 141,686 Bitcoins of the original 950,000 Bitcoins, or about 14.91%. This 14.91% is said to be the basis for the actual repayment to be expected.

Deducting a margin then results in the offer price for the customer. These offers vary greatly in amount from provider to provider and also from month to month.

Fortress Investment Group LLC

One of these providers is Fortress Investment Group LLC. This is an American investment company (legal form Limited Liability Company) based in New York City. The homepage of this company can be found at https://www.fortress.com/.

Fortress MTGox

The lawyers of the Herfurtner law firm represent clients in negotiations with potential interested parties and in the implementation of the contract. In doing so, economic aspects are considered first.

Due to the strong price fluctuations in the Bitcoin price, it is always necessary to update the offer prices and thus the contract in order to be able to achieve the highest possible “sales price”.

When implementing the assignment of claims, a variety of factors need to be considered, which should be monitored by a lawyer in order to be able to ensure a successful execution of the contract.

“It is also not mandatory to wait for an offer from a potential interested party. It is also possible to seek contact yourself and request an offer to assign claims against MTGox in return for a payment. We are in regular contact with such providers and the relevant contact persons, so that we are able to carry this out promptly at any time. Customers should refrain from acting “on their own”. In addition to the legal and economic complexity, there is also the international aspect. Claimants should seek advice from a lawyer in advance,” advises lawyer Arthur Wilms

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MTGox Reddit

Due to the unprecedented dimension of the MTGox insolvency proceedings, the matter has become the subject of lively discussions on the internet. Since the former customers of MTGox are scattered all over the globe, many join together in online forums to exchange experiences with other affected parties.

The topic portal reddit has turned out to be a particularly popular platform in this regard. The latest developments from Japan are regularly discussed there. Reports about Fortress and other providers are also posted on this platform.

Caution with false reports

In the past, the public exchange of information on MTGox was repeatedly used by fraudsters. They pretended, for example, to be able to obtain prioritisation in the insolvency proceedings in exchange for advance payment.

Attorney Wilms advises: “Caution is advised when making enquiries on the internet; advice from a legal expert can help to recognise fraudulent offers.”

Especially on platforms like Reddit, it should be kept in mind that users are acting anonymously. The truthfulness of public statements should always be critically questioned.

MTGox Legal

Another alleged association of aggrieved parties appears under the name “Mt.Gox legal”. The extent to which the “MT.Gox Legal” association is a serious lobby cannot be determined with absolute certainty. On its website, “MT.Gox Legal” claims to represent over 1000 claim holders.

However, access to the forum of those represented is only to be granted after payment of a voluntary donation of USD 100.00.

Hack of MTGox

The concrete circumstances of the hacker attack have not been fully clarified to date. So far, no one has been held personally responsible for the hack at MtGox. According to rumours, the then managing director of MTGox was involved in the attack. The former CEO of MtGox, Mark Karpeles, was sentenced to probation.

However, this related to the manipulation of the balance sheet and not to personal enrichment.

MTGox Login

It has not been possible to log in to the MtGox homepage since the insolvency proceedings were filed. All claims are to be made via the Japanese trustee office. In connection with the login to MTGox, controversy regularly arises that the currency exchange is to be put online again under the heading “GoxRising”.

According to our research, however, this is false information which is groundless according to the current state of knowledge.

MTGox News

Customers of the platform report that they have received “mail” from the trustee Nobuaki Kobayashi in the meantime. This concerns a vote of the claimants. The vote is to decide whether the payout should be made in real money or bitcoin. A concrete schedule, however, is not yet available.

It is therefore open when and how much money or Bitcoin the claimants will receive.

Lawyers clarify

More than six years have passed since the insolvency of MTGox. During this period, there have already been a number of court decisions, some of which have significantly influenced the course of the insolvency proceedings.

Parties involved often report to us that they are no longer aware of the current status of the proceedings. Contact our experienced lawyers now and let us inform you about the current status of the insolvency proceedings.

Experience in the field of cryptocurrency

The Herfurtner law firm has many years of experience in the field of cryptocurrency and crypto trading.

Lawyers provide advice

The lawyers of Herfurtner Attorneys at Law will advise you competently and without obligation on how to proceed. The further course of the proceedings for the compensation of the injured parties has not yet been finally determined, which is why the latest developments are always observed and analysed by our lawyers.

We would also be happy to assist you as competent representatives of interests for future settlement negotiations in connection with MTGox. If you are already part of the extensive insolvency proceedings of the crypto exchange MTGox, please feel free to tell us about your experiences so far in the comments column.