Fortress Investment Group is offering creditors of infamous defunct crypto exchange Mt. Gox an early payout ahead of a vote on a proposal that could remunerate them in mid-2022.
As per a letter obtained by The Block, the investment firm—which is known for its investments in private equity and stocks—is willing to pay up to 80% of what creditors are owed. Creditors, which have been waiting on a pay-out for years after Mt. Gox shuttered in 2014, could also receive 90% of the value of their claim under a proposal overseen by the trust managing the defunct exchange's liabilities.
Still, Fortress estimates payments under that proposal—which will be voted on in October—may not be issued until 2022. Here's a passage of the letter, which was penned by Fortress managing director Michael Hourigan:
"The Mt Gox Trustee recent published a Civil Rehabilitation plan which may allow creditors to receive a payout in mid-2022," Hourigan wrote. "Our attorney's estimate that this distribution would occur in mid-2022."
"Rather than waiting another 1 to 1.5 years, we are offering a liquidity option for creditors who want to receive cash or BTC now," Hourigan said.
The firm has set aside $100 million to purchase these claims, betting that Mt Gox's thousands of creditors would prefer a payout on the coins they're owed now at a slight discount.
Payouts by Fortress are based off a calculator built by Kim Nilsson to help Mt Gox creditors estimate their mid-2022 payment.