The group of investors consists of Brock Pierce, a former child actor who later became an entrepreneur, William Quigley and Matthew Roszak who are venture capitalists. The investors’ aim and hope is to revitalize the ex-bitcoin exchange. They want to put aside fifty percent of its transaction fees to pay back all the former MtGox customers and other creditors hurt by the ex-bitcoin exchange, the journal reported.
The creditors of the ex-bitcoin exchange will have the option of obtaining an allocated amount from the 200,000 recovered bitcoins or getting the same amount in equity in the new exchange.
The Group of Investors Explain Decision
The group has explained the extreme low price for the ex-bitcoin exchange by saying that there was an “information vacuum” about MtGox’s missing bitcoins which made it difficult to figure out the value on the lost and stolen digital currency.
The purchase of the ex-bitcoin exchange has to be approved by a Japanese bankruptcy court.
MtGox was once at the top of the bitcoin ladder but filed for bankruptcy protection in Japan in February. The exchange revealed that 750,000 of its customers’ bitcoins and 100,000 of its own were stolen by hackers having exploited a security flaw in its software. Further blaming transaction malleability and a flaw in the bitcoin protocol, the ex-bitcoin exchange tried to explain its downfall. In March, the ruined ex-bitcoin exchange disclosed that it had found 200,000 bitcoin in an old wallet online which it thought did not contain anything.
A published research report conducted at ETH Zurich University in Switzerland stated that researchers determined that only 386 bitcoin were lost due to transaction malleability issues. With continuous mounting information against MtGox has left its customers mistrustful and angered at the exchange.
With this new development in the long saga of MtGox, the hope remains that perhaps the customers of the fallen exchange will get their investment back.
Image via MtGox