The Coordinator of Mt. Gox largest Creditor Group Steps Down!

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Andy Pag, the founder, and coordinator of Mt. Gox largest creditor group has announced that he will lay down his powers due to the difficulties that have arisen in the process of rehabilitation of stock exchange creditors, which may take another two years.

Postponed Deadlines

Andy Pag, who founded a group of creditors 18 months ago, called Mt. Gox Legal, said that previously announced payout deadlines for creditors (before the end of this year) may be postponed to Mt. Gox’s former partner – Coinlab, which announced its claims to the stock exchange.

Legal Issues

Coinlab, funded by Tim Timer, Barry Silbert and Roger Ver (among others), became Mt. Gox’s partners in 2012 wand basically represented the exchange in the US. In 2013, Coinlab sued Mt. Gox’s. The company claimed that the exchange had failed to comply with the partnership agreement and asked for a compensation of $75 million. Mt. Gox made a counterclaim stating that the agreement had been breached directly by Coinlab, but then, when the exchange was closed, the court did not make a final decision.

“Coinlab originally put in a bankruptcy claim originally of $75 million which people thought was excessive… When we went to civil rehabilitation, everyone refiled the same claim, but Coinlab filed $16 billion,” says Pag.

“It looks like it’s stalled”

Coinlab’s American lawyer Edgar Sargent told that he could not talk about the claim amount before a Japanese court does, and that he was not sufficiently familiar with Japanese law to comment on the matter.

Mt. Gox Curator Nobuaki Kobayashi has to divide the creditor’s votes according to their share, but it is not possible to do so until the Coinlab claims have been assessed and dealt with.

“Because it’s pending and it’s still disputed, the trustee can’t attribute fair voting rights if it’s accepted or zero voting rights if it’s rejected but… until it’s [resolved] the trustee can’t give them voting rights… It looks like it’s stalled,” Pag explains.

The judges may need several months to a year to assess the claim. If Coinlab’s claim is rejected, the company will be able to challenge it, which will take another year. In general, according to the assessment by Pag, the decision on Coinlab may last from 18 to 24 months.