A group of investors that includes a former Hollywood child actor are attempting to hit the emergency stop button on MtGox’s liquidation.
Late Monday, Sunlot Holdings announced it had arranged a settlement in two class action lawsuits brought on behalf of Gox customers. The terms of the settlement must still be approved by Gox’ court-appointed bankruptcy administrator, who just last week ordered liquidation to begin.
“The company negotiated the settlement as part of its effort to take over the bankrupt exchange before a court-ordered liquidation,” Sunlot’s statement said. William Quigley, one of the Sunlot investors, added that,”Liquidation would have adverse consequences for Mt Gox customers and the entire Bitcoin community. Millions of dollars worth of lost bitcoins would never be recovered and most of Mt Gox’s assets would go to paying bankruptcy lawyers and others involved in the process rather than customers.”
Under the proposed settlement, recovered Mt. Gox assets would be distributed to 127,000 affected customers on a proportional basis. Customers would also receive a 16.5% interest in Sunlot, allowing them to share in company dividends, as well as benefit from any future buyout or IPO.
Sunlot also says it hopes to set up an Administration and Prosecution Fund to return $275 million of stolen customer assets — though it does not explain how this would work. Former Gox CEO Mark Karpeles said earlier this year nearly half a billion dollars’ worth of Bitcoin had gone missing.
Sunlot has a website running called SaveGox.com, where it explains part of its rationale for trying to rehabilitate the troubled exchange. “If the Bitcoin community can prove to be self healing without government bailouts, the entire ecosystem will benefit, including our portfolio of bitcoin investments.”