Fortress Investment Group has reportedly raised its offer to purchase claims from creditors of the now-defunct crypto exchange Mt Gox.
Mt Gox went bankrupt in 2014 after reporting losses above $480 million worth of bitcoin. In June 2018, its case status was changed from bankruptcy to civil rehabilitation by Japan’s courts.
As a result, the firm was able to restructure its business and creditors might have a chance to regain their lost funds. An Oct. 2019 report by Tokyo District Court shows that a total of 56 Mt Gox’s creditors have filed petitions for the claim assessment process.
But Fortress is trying to convince creditors to sell to them instead. In an updated letter to creditors, Fortress proposed to acquire their assets held by Mt Gox at $1,300 per bitcoin, or 88% of their estimated account value, Bloomberg reported on Wednesday.
The new deal marks an increase in price from the last one in Dec., when the firm offered a 70% payment of creditors’ claims.
Fortress managing director Michael Hourigan cited the prolonged legal process as the reason why creditors should sell to them at a discounted rate in a statement to Bloomberg. Creditors should accept the offer “due to the likely timeline (3 to 5 years) and financial risk of the ongoing litigations,” he said.