John Betts is one of the investors with Sunlot Holdings who has been looking to buy MtGox since January 2013. Sunlot Holdings is offering one Bitcoin (~$500) to buy MtGox, which was at one time the largest and most successful Bitcoin exchange.
According to John Betts, creditors who own over 70% of MtGox’s lost bitcoins have agreed to Sunlot Holdings’ proposition of buying and reviving the fallen Bitcoin exchange. They feel it is a better alternative than having a Japanese court liquidate MtGox.
Support for MtGox Buyout
In order for this plan to go through, the acquisition has to be approved by a Japanese bankruptcy court. Last week, MtGox said that the Tokyo District Court allowed it to get rid of a rehabilitation plan and the ex-Bitcoin exchange expects to be liquidated.
Brock Pierce, who leads Sunlot Holdings, and Matthew Roszak and William Quigley, have come to the agreement of buying a 12% stake in Mt.Gox from the founder Jed McCaleb. McCaleb had sold the rest of MtGox to Mark Karpeles back in 2011.
“Where possible they should form a block with other creditors to give them a better standing with the court and make it easier for us to communicate with them.”
From the buyout, creditors can receive payouts from the 200,000 bitcoins that were found in a lost MtGox wallet. MtGox initially claimed to have lost 850,000 bitcoins from supposed hack attacks. However, it soon found 200,000 bitcoins in an old-formatted wallet. John Betts said,
“This is about bitcoin and preserving the value of the bitcoin ecosystem.This is our collective opportunity to demonstrate the commitment of [the bitcoin] community, that we don’t need government bailouts and that the community is self-healing.”
At first Sunlot’s proposal of acquiring MtGox seemed to be doomed since the company did not have enough financial backing. However, according to John Betts, the company now has more financial backing that can be shown to the court.
Image via MtGox.