The Mt. Gox exchange went under after a series of hacks and lawsuits in 2013 and 2014. These events led to the loss of approximately 850,000 Bitcoin (BTC). Since then, users who had their investments locked up at the exchange have been trying to get their funds back.
GoxRising and its Aim of Accelerating a Resolution
A group of Mt. Gox creditors has thus banded together to create a knew movement known as ‘GoxRising’. The movement is registered in the British Virgin Islands under Gox Rising Limited and aims to support creditors of the Mt. Gox estate by attempting to maximize their recoveries. The movement also has a goal of reviving the exchange and create additional economic benefits for participating creditors. The final goal is to achieve a fully recovering of what was lost.
According to the movement’s website, GoxRising will present a detailed Civil Rehabilitation plan (the “CR plan”) to the Japanese Trustee by April 22, 2019.
Gox Rising has been proposed by controversial crypto celebrity, Brock Pierce. Mr. Pierce claims that he successfully bought the 12% stake owned by Mt. Gox’s founder Jed McCaleb for 1 BTC as soon as the exchange imploded. McCaleb has yet to confirm the transaction but Pierce added that his investment group of Sunlot Holdings handled the deal.
According to a TechCrunch report, Pierce and Sunlot want to track down the missing crypto and have it properly assessed for redistribution. He explained to TechCrunch the following:
Like Game of Thrones, the last season of Mt. Gox hasn’t been written. What kind of ending do we want to make for it? I’m a Joseph Campbell fan, so I’m obviously going to go with a hero’s journey, with a rise and a fall, and then a rise from the ashes like a phoenix…
Sunlot Holdings needs at least half of the affected Mt. Gox creditors (approximately 12,000) to sign up to a creditors committee to get the ball rolling on the GoxRising plan. Such a majority number would allow the process to move faster than it is right now. Pierce added,
Things are on track to be resolved in the next three to five years. If [a majority of creditors sign on] this could be resolved in maybe 1 year.
Additionally, Pierce wants to create a Gox Coin for creditors who sign up to have a stake in the company. His plan is to have all Mt. Gox’s equity liquidated then arrange to finance and tokenize an independent foundation that will be run by the creditors to seek all Mt. Gox assets. The latter will be distributed pro rata to the holders of Gox Coin.
Pillars of GoxRising
The five pillars of the Gox Rising Civil Rehabilitation plan as outlined on a proposal to be submitted to the Tokyo District Court is as follows.
- Maximize distributions to Creditors from the cash and coins held by the Mt. Gox Trustee
- Optimize speed and precision of distributions to fiat and crypto creditors
- Capture all cryptocurrency forks that have happened since the exchange went under
- Provide bid for tangible assets and a vision for the new Mt. Gox Exchange
- Continue the pursuit of residual assets including the lost/stolen coins
Vision of GoxRising
The vision of GoxRising is to achieve the following:
- To launch a new exchange under the banner of the most recognized crypto brand as a Phoenix rising from the ashes
- The New Mt. Gox Exchange to be launched as an institutional grade, fully licensed and partially decentralized crypto exchange
- The New Mt. Gox Exchange will welcome all Creditors, irrespective of claim size, and continue work towards full creditor recovery even after the Estate has been settled by the Trustee
What are your thoughts on Gox Rising? Is the idea plausible? Please let us know in the comment section below.
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