March 8, 2017 Creditor Meeting: Still No End in Sight

I was in attendance at the MtGox creditor meeting at Tokyo District Court yesterday.  The English language materials that were distributed at the meeting are available at mtgox.com.   The materials do not give much guidance and many sections are repeats from previous meetings.

My Japanese translators did confirm a couple points that were discussed verbally but not included in the written materials.  The trustee entered into an agreement with the US Department of Homeland Security (DHS) for the return of $2.5M USD that DHS seized from MtGox in 2013.  The problem is that DHS actually seized $5M from MtGox in 2013.  The trustee’s reasoning was that it would cost more than $2.5M USD to litigate the case against DHS. But why DHS felt entitled to the $2.5M USD that is owed to creditors is not known, perhaps it was based on asset forfeiture grounds.

Why DHS felt entitled to the $2.5M USD that is owed to creditors is not known.  Perhaps it was based on asset forfeiture grounds.  I’ll leave the discussion on this to other forums.  The point is that there is now an additional $2.5M added to the pot, but also $2.5M we won’t be getting back.

No details about the CoinLab claim or the litigation surrounding it was discussed.  But the asset sheet still included the roughly $5M USD owed by CoinLab.  Safe to say the case has not ended, but no idea on when it will be concluded.

The next creditor meeting was set for six months from March 8.

Leave a Reply

Your email address will not be published. Required fields are marked *