Mt. Gox creditors received some good news recently. Fortress Investment Group is buying claims at double Bitcoins value 10 April 2014 when cryptocurrency exchange was declared insolvent and ordered to liquidate after a massive hack. While Mt. Gox eventually recovered 200,000 bitcoins, 650,000 were lost forever. The assets the cryptocurrency exchange had left have been frozen for years.
During its heyday, Tokyo-based Mt. Gox was handling up to 70 percent of bitcoin transactions. The cryptocurrency exchange started as a way for Magic: The Gathering game players to trade cards. In 2011, a hacker accessed Mt. Gox and took 200,00 bitcoins. Despite this, the exchange appeared to thrive, yet all was not well. A former business partner sued Mt. Gox and the U.S. Department of Homeland Security seized $5 million from the cryptocurrency exchange because a subsidiary in the U.S. didn't have a license. Surprisingly, there was more trouble to come. Hackers stole more bitcoins, and the company stopped trading and took their website offline.
Creditors who gave up on ever seeing a dime from Mt. Gox may have a claim automatically filed on their behalf according to an unverified email seen on Reddit. Mt. Gox’s trustee announced in April he didn't know how or when claims would be paid. Fortress is offering $900 per coin in bitcoin or fiat currency.
In March 2017, the Tokyo District Court found Mt. Gox's former CEO, Mark Karpelés, guilty of inflating the company's holdings, however, he was cleared of the embezzlement charge. People who lost money expected to be repaid according to the current value of their lost bitcoins, but this won't happen. It's rumored Karpelés still will have more than $1 billion worth of bitcoins of his own left after creditors receive their compensation since shareholders get what's left and he owned 88 percent of Mt. Gox.