The Man Who Lost Everyone's Bitcoin - BREAKERMAG

March 20th 2019 Creditors Meeting Q&A

As usual the documents distributed during the creditors meeting are available from the MtGox.com website.
Meeting started at 13:30, Q&A at 14:02. Next creditors meeting will be held October 1st 2019 at 13:30.
Apart from what is written on the report, the trustee mentioned that large claims in assessment could make it difficult for civil rehabilitation to continue moving forward, and also mentions that seeing how bitcoin price dropped it might be better to sell. He asked people in the room at the end who was for selling BTC (0% responded "for", ~20% responded "against") but mentioned he wouldn't be bound by this and would act in the interest of creditors with approval of the court.
submitted by MagicalTux to mtgoxinsolvency [link] [comments]

Creditors meeting notes from 20 March 2019

From https://www.mtgoxlegal.com/2019/03/21/creditors-meeting-notes-from-20-march-2019/

Creditors meeting notes from 20 March 2019

March 21, 2019Andy Pag
I attended the meeting with a whispering translator, who is up to date with the case and did a great job, so I feel I understood the meeting well.
There were about four creditors from the group who attended, and a few others creditors too. There were lots of lawyers too. One law firm sent a team of 5-6.
The first 35 minutes the trustee went through his report which you can see online. I thought he really took his time to explain the challenges we’re facing, and was more open and candid than he’s been in the past.
Acccounts: Cash and deposits: total 69.5B jpy. It has decreased by 120mJPY [about $1m since last meeting]. 15b JPY is in trust. [This is to guarantee the BK payout equality]
About 140K BTC and 140 BCH. He’s continuing to investigate the losses to see if there are any other recoveries.
He also acknowledged that there are Altcoins, and that creditors have the right to recoveries from the value they represent. [This is the first time he’s acknowledged this]
Self Assessment claims [Zombie claims] He explained that the CR statute is different from the BK statute in that it dictates the requirement to create claims for all those who may have a claim, even if they don’t come forward. He later listed the value of these. You can see them in Annex2 of his report. Never filed zombie claims are worth 89k BTC BK filed zombie claims are worth 44k BTC
Non exchange related claims There are 7 creditors filing claims unrelated to the exchange. He didn’t say it but these include Tibanne and Coinlab
[for background and not mentioned in the meeting, Tibanne’s claim relates to bitcoins owned by them which were being held in gox’s cold wallets. I’ve been told that typically BK claims between parent and child companies like this, are dismissed by the JP courts as a wash. 0 to everyone)
Checking your claim Online claim filers can check their filing online Offline claim filers will be emailed with the address they gave at time of filing. [more on this in the questions.]
Future process Both coinlab and tibanne have filed appeals against assessment [FYI the process is, you file a claim, trustee rejects it, you apply for reassessment (which is generally called “assessment” and the court rules on it. If it’s rejected you can go to litigation, with 2 rounds of appeal to higher courts.- that whole process would take several years]
Tibanne has filed for reassessment of their 82kBTC, Coinlab has filed for reassessment of their $16b
Exchange related claims are worth 802kBTC [note compare that to 799kbtc under BK, it’s almost that same ammount, so opening to refiling hasn’t diluted our share – not withstanding zombie claims which are not included in that 802k total.] This figure is open for review, up to the 29th of March, and creditors can file objections to these claims (both to approved ones, and rejected ones) before that date. [note this is what we are doing re zombie claims] In total 1085k btc claims were filed but only 802k were rejected. You can see the list at the court.
Decisions that are rejected under (re)assessment can file a petition with the court between 30march and 7 May. After that their claim has no more standing.
The trustee continues to investigat the theft but due to a scarcity of information he’s not built a full picture of what happens.
The US DoJ brought charges against Vinnik, Part of charges were that he obtained value from Mt Gox. Depending on outcome of that trial and investigation, there may be some recoveries.
Tibanne is in BK, It has rejected the claim made against it by the truestee of mt gox. And that claim is now under re(assessment).
MK is in BK, [not sure I understood this right]. Mt Gox claim against MK for 20m JPY, He was found not-guilty of fraud, but guilty of manipulation of records and has a suspended sentence.
Moving from BK to CR means he has had to inform outside jurisdictions that this has happend. [He kind of snuck this past everyone, but I think what this means that there are other stayed lawsuits against Mt Gox outside Japan, which can recomense again now, that Gox isn’t under BK protection. – I’ve heard not from a lawyer, that this could lead to other claims against the CR entity futher down the road.]
The deadline for the CR plan submission is April 26th, but due to coinlab and tibanne case, he will not meet this deadline. [more on this in the questions]
Questions Andy’s Qs: Is coinlab’s claim size an abuse of process – didn’t answer it specifically. Wada was in the room, and on record it’s not surprising, but I wanted to ask the question in front of the judge. I discussed this as a strategy with Sekido. I will follow up when I meat him on Friday in private. But what’s good about that is that he didn’t say no. The Trustee and Coinlab will make submissions to the court, and judgement in the coinlab case will come “as soon as possible” – no indication on that being days and weeks months years decades… Voting rights for coinlab. Part of assessing the claim is to asses the voting rights that go with that claim. Coinlab’s claim was rejected so got 0 voting rights. However creditors can apeal to the court to exercise their voting rights, so the court will decide. Coinlab’s claim is enormous so the court will decide, and there is a big question over how this will be handled. The process (CR plan filing) will be delayed until assessment is finished. I can’t say when we will have a report. [The way my notes read it sounds like they can file a CR plan after assessment while litigation goes on, but I got the impression in the meeting he meant that he can’t file CR until litigation is settled – I’ll check with Sekido and the Trustee about this] “I can’t say when we’ll have the report ready.”
How to voting will work. No decision yet, [this means they can’t confirm it yet but…] We have made the online system, I would like to use it. ultimately we have to get a decision on this from the court.
Communicating with creditors, he takes the point that the english comms are bad and will look at doing something better in future.
L. Flemming’s lawyer asked: about coinlab’s claim being partially approved. Chart has 6 rows for 7 creditors so that approved number doesn’t neccessarily apply to coinlab. It’s split by denomination. not claimant.
CR means reastart process. under BK already rejected coinlab. But we know substance of argument. Considered already under BK. This will speed things up. If the claimant not satisfied, they can bring trial proceedings, so hard to say when we will reach a conclusion. No clear date that we can give you. [this is the bit that makes me think they won’t start CR until Coinlab has been through the courts]
Another Q How to verify offline claims? Results by email. When? not yet sent? Is email going to claimant or to representative. Is there another way to verify outcome? Offline claims, can they not go online. It would be better if you verified all claims online. Answer: Working on email at the moment, issue shortly. Email address supplied by claimant. Website security is an issue. Because of that offline claims are staying offline. Under law, submitted outcome to court, go to court to get results
Fukuoka’s collegue Q. Self admitted claims. Breakdown – BK and non BK zombie claims. What you gonna do about it? Answer: Under CR proposal still assessing how to deal with this. Not yet come up with any policy. [A politicians answer, which I think is good. the fact that they’ve split these out, makes it easy for us to object. They are expecting our objection. I’ll be discussing BK zombies on friday]
Maurice lawyer: [This is J Maurice? aka Wiz, former partner in Wizsec] Do you Plan to establish an exchange, to make settlements, how are you thinking of distributing. Answer A plan is not finalised yet. But I’ll give you my understanding. While we have started CR, Gox is no longer in business, so I don’t think we’d be able to have that exchange adopted. So it comes down to how we distribute in cash or crypto. Crypto – we are not able to use blockchain to pay it out, (direct payments) so we would have to use an exchange to do that. Significance of using exchange is that it would involve creditors to sign up as users. We pay exchange, exchange distributes settlement, We would use the creditor account balance as a reciept for settlement.
Lawyer Q: on Cash or BTC? If you are liquidating more are you doing it the same way as before. Are you able do disclose method for liquidating. Answer If we decide we should sell btc, consult with court and use appropriate method. Still not decided.
Trustee asked for a show of hands, given the price drop from last meeting, on who want BTC and who wants him to sell. No hands for selling, lots of hands for BTC. [I think he’s getting it] he also said he would be using the online system to collect opinions on this again.
Judge: Next meeting 1st of October. 1h30pm. Same venue.
Andy Pag – These are my notes, which may contain errors and should not be used to base legal or financial decisions on. I am not a lawyer. This does not constitute legal advice.
submitted by andypagonthemove to mtgoxinsolvency [link] [comments]

It's u/chaintip's first cake day and here are some stats from the on-chain tipping.

Please let me know if you'd like me to remove your name.
Tips: 3487
Claimed: 2631
Returned: 856
Total tipped: 16.014 BCH
Total returned: 1.618 BCH
Largest Tip: https://www.reddit.com/btc/comments/9bpp8z/using_pgp_signatures_with_bitcoin_script_op/e55alla/
Distribution of claimed vs returned tips: https://imgur.com/ourZVhn
Top 13 tippers by value:
('crasheger', 0.16366452),
('BitcoinCashHoarder', 0.17800122999999998),
('alwaysAn0n', 0.2126823),
('LovelyDay', 0.2331799999999997),
('DoomedKid', 0.26509176),
('ShadowOfHarbringer', 0.28966415999999995),
('KoKansei', 0.37498614999999996),
('Tibanne', 0.4814748099999998),
('CityBusDriverBitcoin', 0.7410441800000002),
('jarenfeser', 1.4521157800000002),
('Life_after_moon', 1.4955423800000005),
('where-is-satoshi', 1.97366478),
('ErdoganTalk', 2.531063649999954)
Top 13 tippers by frequency:
('Kain_niaK', 49),
('jarenfeser', 53),
('cryptorebel', 61),
('A_Recent_Skip', 61),
('Vincents_keyboard', 91),
('BitcoinXio', 96),
('Brilliantbit8', 97),
('DoomedKid', 104),
('josiahromoser', 117),
('crasheger', 128),
('Tibanne', 194),
('LovelyDay', 361),
('ErdoganTalk', 738)
Top 13 tippees by value:
('donkeyDPpuncher', 0.12642225),
('utopiawesome', 0.12648301),
('jonas_h', 0.1294146),
('BonitaTerror', 0.13684243),
('Bibi489', 0.15166129),
('derekmagill', 0.15839197000000002),
('JonathanSilverblood', 0.16817845999999997),
('DitoSmith', 0.20724730000000002),
('imaginary_username', 0.21575772000000001),
('peopleb4things', 0.22249759000000002),
('SomosPolvo', 1.00890924),
('MobTwo', 1.0469825000000004),
('markblundeberg', 1.86350661)
Top 13 tippees by frequency:
('josiahromoser', 9),
('bambarasta', 10),
('derekmagill', 10),
('Elatedonion', 10),
('cryptorebel', 11),
('rdar1999', 11),
('DitoSmith', 11),
('unwriter', 12),
('jonald_fyookball', 15),
('chefticus', 15),
('peopleb4things', 20),
('Kain_niaK', 24),
('Tibanne', 36)
submitted by Tibanne to btc [link] [comments]

Kobayshi's feedback on Mt Gox Legal's CR plan outline.

TLDR;
---
Mt Gox Legal is now are now fundraising for legal fees to cover the final stage of securing a CR plan that works for all creditors.
Making a donation is entirely voluntary.
To hit our target, I've suggested that all members of Mt Gox Legal donate £1GBP/BTC in their claim, here https://www.mtgoxlegal.com/2018/08/09/fundraising/
If you aren't a member of Mt Gox Legal you can still join and/or donate.
--
Last week our lawyer Sekido-sensei met with Kobayashi-sensei to discuss the plan we put forward. Here are the points that Sekido briefed me on with reference to our outline plan which you can read here: https://www.mtgoxlegal.com/wp-content/uploads/2018/07/CR-plan-outline-July-17.pdf.
Atmosphere was good.
1/ Fiat claims honoured as under Bankruptcy - no commnets.
2/ Sek made it clear we don’t want any more sales. Kob didn’t say yes, but we didn’t receive any specific objection. Didn’t find anything in his reaction that would cause me to believe he was planning more sales.
3/ No Benefit to shareholders: Tibanne may have claim admitted. Kob has counter claim against Tibanne under their bankruptcy of Tibanne. [I believe our claim against Tib is bigger than theirs against MtG] Don’t know if it’s accepted. Might be able to off set claims or money will go and come back. Either way Kob is aware of the issue and planning a solution in creditors best interests.
4/ Alt coins: Trustee’s reaction is that it’s not easy to seperate keys for altcoins. It’s challenging. If we [Mt Gox Legal] can present a safe way for the trustee, it may advance the situation. But it’s not easy for the trustee to conduct this because of technical security. After the first distribution, it might be easier for him to sell the key.
Kobayashi understands alt coins and their value.
His question to us: How to auction the key?
5/ Mixed claims - no issue
6/ Timetable for distribution, Kob agrees to timeliness is important.
7/ Distribution Channel. There was a clear response from trustee: distribution to private wallets is very difficult. so they are very reluctant. Distribution for BTC is it’s necessary to have an exchange. We emphasised more exchange options creditors have, the better for creditors, but there must be a limitation, cos trustee cannot accept unreliable exchanges. They need to execute some contracts, so exchange needs to have solidity to be a good for counterparty. Also, the approval of the court is required. Kob is Open to options, not fixed their minds on which exchange. They want to understand the need of the creditors, depending on the need of creditors around the world. That’s the basic requirement of the law. Need to cover all over the world where creditors exist. - Appreciate our input on this.
Kob’s position on this is very strong on this.
Kob cannot take responsibility, once distribution is completed there is no money for compensation. Clear need to have limited liablilty for trustee. Once creditor choose exchange, and assets are transfered. After that, if there is a problem trustee is not liable.
Possibility that there are creditors who cannot make an account on an exchange for geographic reasons. - In that scenario the suggested option is to convert claim to cash and send via bank. That kind of option may be necessary. In this case the trustee will need to sell some btc in order to distribute cash. Trustee will need proof of id.
Distribution of cash: not clear, but Sek didn’t hear anything negative for cash distribution to either bank or exchange. - reaction not negative. Open to offering distribution to both bank or exchange.
8/ The response to this point is on the Mt Gox Legal forum. For all creditor's interest I'm not going to share it publicly here.
9/ Trading records. Kobs reaction was: Not easy. It may require costs. We [Mt Gox Legal] should make a more specific request. Issue of equal treatment may come up, if limited number of creditors need to this, Kob can use that as an excuse to avoid it. - Need to show how much demand there is for this.
[I raised the counter point that this information is an asset of value to creditors and should be considered as such. We need to go back with a sense of how many creditors need this (a proportion, or which jurisdictions) and how the information could be accessed via the online filing system) - it may be that creditors who want/need this may have to pay for it individually.]
Questions from Kob:
Geographic variation of memebers of MtG Legal, to consider which exchange is appropriate or not? He wants to have local information which exchange works. Creditors from local area will have infomation.
We requested face to face meeting after creditors meeting in september. Waiting for response.
AOB/ claims open by the end of this month as per memo on website.
---
We(MGL) are now preparing recommendations of which reputable exchanges operate (allow people to register AND withdraw fiat) in which regions.
We are also proposing a working solution for obtianing creditor's trading records.
And we are preparing a suggested project plan for how to auction the keys for altcoins once BTC and BCC have been moved from the wallets.
Redditor's feedback on these issues is really welcome. Please comment below.
---
Just a reminder... We are now fundraising to cover costs for Sekido to guide us through these issues. If you are a member of Mt Gox Legal please consider either donating £1/bitcoin in your claim here; https://www.mtgoxlegal.com/2018/08/09/fundraising/ or if you haven't already, then please join us.
submitted by andypagonthemove to mtgoxinsolvency [link] [comments]

Overview of Insolvency Hearing March 7 2018

Mr. Koyabashi made a positive presentation of progress both raising cash and resolving outstanding disputes. My highlights are:
Koyabashi has gone from 14 outstanding disputed claims valued at us$45 million to 3 in the last 6 months. Its likely these will be settled in next 6 months at which point all the legal disputes over claims will finally be over.
Koyabashi has sold enough Bitcoin to make an interim distribution that matches all existing approved claims. Even if the price of BTC were to fall to zero, all approved claims are now matched by cash.
Lawsits involving Coinlab and Tibanne are likely to go on some time. Andy Pag asked specifically why Coinlab has not been resolved in court if settlement is impossible. Koyabashi said he did not want to answer that for commercial confidentially reasons (I think).
There has been no progress on the legal question of whether or not distribution in BTC as opposed to cash is possible. After 4 years, I am flat out astonished that this question has not been answered.
I personally left the meeting feeling that Koyabashi has made progress on the huge admin job of evaluating the 24000 claims that he started with and getting it down to 3. But I am very frustrated that he has the funds to make a substantial interim distribution and seem to feel no need to do so.
submitted by Btc_Hawker to mtgoxinsolvency [link] [comments]

If the price of BTC continues to rise, will Karpelès profit in the end? [x-post /r/bitcoin]

So Bitcoin claimants in the Mt. Gox downfall have agreed to receive under $450 per Bitcoin if/when the bankruptcy pays out. If the value of BTC continues to rise, to the point where 100% of genuine creditors can be made whole again, will remaining funds go to Tibanne (Mark K)? Or will he take the remainder and distribute among BTC holders?
submitted by goxburn to mtgoxinsolvency [link] [comments]

My view for the worst, better, best case scenario

Even with current straight bankruptcy (hasan) trustee can address the court based on finance analysis and cuncil for new evaluations of intangible assets(btc) due to price violity and significant asset value increase after inital btc value evaluation, what if approved, with current straight bankrupty btc+forks must be sold to pay all creditors with updated and new evaluated claims. On another hand, only if CR and plan is approved, these btc and forks can be distributed unexchanged (unliquidated) to the creditors.
All asset whatever tangible or not is liquidated only to the certain point to get liquid asset (funds) to pay all creditors. When that is done, bankruptcy is completed and court/trustee authority stops. Any remaining asset remain as asset what company can use to resume busines or whatever they choose. Ordinary, in bankruptcy liquidation, all asset in full had to be liquidated, because creditors claims are much higher then company assets worth. Its liqidated in full only if asset can't be sold partialy and there is no other assets to be liquidated. However, in MtGox bankruptcy things has changed, untangible asset are now worth much more then total of approved creditors claims and if claims stays with current evaluation, asset will be liquidated only to the funds worth what equal all total approved creditor claims, nothing more! Update: under bankruptcy (hasan) corporation has to be dissolved what after distribution of all creditors has been made and Court bankruptcy termination order , dissolution esentualy cause all remaining asset liquidation and surplus sent to the shareholders - Tibanne and then Mark Karpeles.
Worst case scenario: The Court settle all creditors claim with current evaluated btc (483$) +fiat+interst coverted and paid as JPY where only enough intangible assets (btc) are liquidated (sold) to settle all creditors (what are almost already done), what makes bunkruptcy completed and reamining 165k btc and forks remain as Mtgox intangible asset where they can do whatever they want, liquidate and pay dividends, trade with btc, invest in other projects etc (bankruptcy is over, no obligation or liabilities to MtGox creditors). (Unfortunetly, in my opinion, this will most likely be the case. Read edit at the end of the OP).
Update: under bankruptcy (hasan) corporation has to be dissolved what after distribution of all creditors has been made and Court bankruptcy termination order , dissolution esentualy cause all remaining asset liquidation and surplus sent to the shareholders - Tibanne and then Mark Karpeles.
Better scenario: If some miracle (never) happens the Court accept new btc evaluation, but then these to be paid as JPY, all (or better to say) suficient remaining btc need to be sold(liquidate) to settle new evaluated creditor claims and question is how much liquid asset (funds) creditors would receive due crushing the btc price. Eventual btc+forks surplus(°) what would be quite lower then in worst case scenario, would remain as intangible MtGox asset where corporation can do whatever they want - bankruptcy is completed. (°(eventual btc+forks surplus would depend on new btc price evaluation for creditor claims and difference in new total claimed sum vs. funds JPY what trustee get from actual btc liquidation). Update: corporate dissolution aplies here too, just much less funds to be sent to the shareholders.
Best scenario: (Low probability, read edit at end of the OP) Civil rehabilitation under supervision with approved plan where creditors can claim all remaining btc+ forks unexchanged (not liquidated) + what is already been liquidated.
In this case, if plan is approved we would get 100% our current claim. We need to divide total claimed JPY sum with 50.058JPY (btc 483$) to get how much that is as btc base and on that result add aprox 17% of btc/bcc distributed as btc/bcc. Percentage (17%) might be lower, depend on ther lawsuit and non mtgox users creditor claims. Example of the best case scenario: Current approved claim. Rates to JPY (2014) BTC= 50,058.12 JPY; US$ = 1USD=103.64 JPY Currency US$ balance = 1,200$= approved sum JPY=124,368. Bitcoin balance = 14btc = approved JPY = 700,813.68 124,368+700,813.68 =825,181.68 JPY total of approved creditor claim/ that is sum what creditor receive 100% sum (liquid funds almost available, to be distributed as JPY). 825,181.68/50,058.12=> 16.48 BTC base: 16.48x17%=> 2.80 BTC and 2.80 BCC to return as cryptocurrency. Sumarise: Creditor receive 825,181.68 JPY and 2.80 btc and 2.80 bcc. That would be max return. Same calculation is aplied if creditor had only btc balances, only any currency (fiat) or both currency(fiat) and btc. Both fiat or currency mean: USD, EUR, GBP, JPY etc.
Iam not sure what that actual CR and plan are in the "best case scenario" as I have no details. We actually need sort of "better case scenario" just without required to liquidate remaining btc+forks and to be distributed as intangible asset (btc+forks). Beside, its Trustee duty to look best interest of all creditors, but for bankrupt company as well, what might cause conflict. Its defenetelly hard and complex situation, for all parties.
Questionable is whatever liquidated intangible asset (btc) under bankruptcy (straight or CR) are subjected to the capital gain (not dividend) and approprate income tax what would cause lower(dilution) funds distribution. However, in that case question is how would be regarded our creditor claims i.e. deductable as intangible asset value entry? Capital gain/profit- loss - deductable - expense=> corporate gross income - tax=> net income. So actually, from what I know from accounting practise, paid funds for evaluated claims would be asset (btc) "in value" while liquidated asset "out value" so actual capital gain net from btc are: difference in paid claims minus actal liquidation value! Beside, that "net capital gain" are not actually "net gain" as there are minus from other deductable sums and only when they are substracted make net income before corporate income tax! It maight be discharged, but I doubt it. Only liquidated untangible asset (btc) are regarded as corporation capital gain/profit, its not corporation dividends. Its conflicted situation because MtGox did not bought these btc, nor mined them, nor gifted, nor received as Mtgox investment and they were never corporation assets. Control of btc as intangible assets does not always equal propietorship (if there are contract or mutual agreement), but it will be (are) if not chalanged and Iam not sure on what grounds are we creditors then (unless corporation addmited debt/liability, but then again on what terms and conditions or user agreement these btc have been received?). Regardless, Trustee must have profesional finance advisoaccountant.
Some examples of intangible assets: patents, trademarks, franchises, goodwill, copyrights, Internet domain names, performance events, licensing agreements, service contracts, computer software, blueprints, manuscripts, joint ventures, medical records, permits, and trade secrets and many more. When MtGox were alive, such intangible asset doesn't enter finance balance sheet neither as asset value or liability value. It would if MtGox exchanged them (trade) for his account with buy/sell price. MtGox when alive these btc just had to record in secundary books as btc +/- held analiticaly for each user. Under bankruptcy proceedings, such a intangible assets as bitcoin is very hard to assest (evaluate), usualy trustee waits until last minute bankrupt company to liquidate them or best bid (°) and to update btc evaluation value what prior were blank, in order creditors get as much as possible. In our case, trustee did not do that and I have not found anything what would make him to evaluate at start of the filling the claims. (°)Actually I think, in case of public auction certain restriction might apply, certain party can't bid (I might be wrong).
However, not all asset are in the same category. In my country, bitcoin is regarded as financial asset, it does not matter is it tangible or not. If I as a person or the company make money from trading internet domains, it would be regarded as income subject to the tax. But if I as a person (not company) make money from exchanging certain personal financial assets, btc, any currency, diamonds, gemstone, gold and earn (dividends and interest excluded) from the positive rate difference, it would not be income subjected to income tax. But in same situation, company would be subjected to the taxes. Capital gain has two separate catogory, dividends what is profit on top of asset (asset reamin) and capital gain from the trade of asset, where one asset is exchanged to another asset and profit is from the rate difference, which can be either positive either negative.
There was a lawsuit against bankrupt Mtgox where user requested full btc refund what were denied with this explanation:
Presiding Judge Masumi Kurachi said the Civil Code envisages proprietorship for tangible entities that occupy space and allow for exclusive control over them. The judge said it is evident bitcoins do not possess the properties of tangible entities...
Basicly that mean, bitcoin is intangible where envisaged proprietorship can't be claimed as they are not phisical in nature and because Mtgox had exclusive control!(based on Japan civil code btw what is 120 years old (°), but what about corrporation/commerce law?) Beside, whatever is exclusive control of said bitcoin (intangible asset) depend on mutual contract, user agreement, term and conditions. Regardless, it was right Court call in this case, they just couldn't return full btc holdings, no chance whasoever, it would be a nightmire for the rest of users who doesn't follow his step, but if he accepted loss of aprox 3/4 btc and wanted only remaining 1/4 rulling might be different.
(°) The National Diet approved significant amendment to the Civil Code in May 2017 to update the Civil Code which is approximately 120 years old. Some general rules and many provisions regarding contracts were amended. The amended Civil Code will be enacted sometime before June 2020.
Edit: Our btc and any other currency balances held at MtGox with 2014 market value is our claim against mtgox all assets. BTC belong to the Mtgox -we creditors only claim that debt. Even these BTC are sold at higher rate then 2014. this just make raise in value of the mtgox liquid financial asset (while intangible asset btc exit books), but doesn't automaticly raise mtgox debts to us! Debt stays as is. According to the mtgoxlegal lawyer, new claim evaluation is not possible and I agree. Then how we the creditors, even in CR will be able to claim the btc as they dont belong to us as btc, but only current debt? Its like we sold our btc at 2014. at 483$ to the Mtgox who never paid us and that value we claim now within our claims. Try to imagine how btc dont exist or it exist but with same rate in 2018 as in 2014. We would be in the same situation if JPY rate against all other currency went to the roof, but btc are still at around 500$. Like its not in 2014, 1usd=103 JPY, but let say in 2018, 1usd=100,000 JPY, our claims would still reflect 2014 rates (even in CR) btc are not different. Even if CR reopen the window for filling claims and evaluation of the ALL claims, it would be at 2014. market rates!
I have a idea where we could get something over our current claims, but still brainstorming and many users won't like it as that is not what they expect to get. I think we are fucked - worst case scenario. Even if someone try to sue based on btc balances once held at Mtgox, it would fail. It might be different case, if Mark(•) said before bankruptcy, hey, these btc never belonged to the Mtgox, return what is left after audit to the mtgox users and then start bankruptcy to try get what went missing from real owned mtgox asset, what is not much and beside, I think bankruptcy would be terminated on grounds how mtgox asset can't even cover administrative creditors who have priority, let alone other creditors. (•) (All three insolvency proceedings can be filed either voluntarily or involuntarily. Generally, no one, including a debtor or any of its creditors, is obligated to file a petition to commence insolvency proceedings under Japanese law.).
50k JPY per bitcoin from creditors approved claim from 2014. is not binding because of Mtgox online claim system state it (or offline claim signiture), but its final and binding based on the Japan Bankruptcy Act court rulling and applicible as binding contractual Agreement in any other Japan proceeding, or eglible laws, Civil Rehabilitation included. Beside, that is only one reason, other reason is how Mtgox is in the bankruptcy proceeding since 2014. its never completed, eventual civil rehabilitation is only transition and if it ever commence, Mtgox is still under rehabilitation Act where for creditors claim total on 2014 rates total nothing change, but can increase distribution from the debtor profits max 100% claim total value (Mtgox has already enough funds or asset to sell to cover 100% payout). Third reason is how Mtgox users are regarded as last class unprotected non-priority creditors. And more reasons, but you get the picture! There is not much difference for the last class of creditors (Mtgox users) between liquidation or civil rehabilitation.
Due to Mtgox terms of use and accounting, Mtgox users are something as unsecured none-priority trade creditors without right to retain proprietorship of sold/bought, but unpaid btc (goods) until actual user withdraw. Real IN and OUT for both fiat and bitcoin with Mtgox are deposits and withdraw, trading are all just virtual balancing and Mtgox is in bankruptcy since 2014. without activity for creditors in regard on this IN and OUT (or trade). Otherwise, if we had legal grounds to get Mtgox btc asset surplus, we would get portion of non-stolen bitcoin back long time ago either outside of bankruptcy or within as separate satisfaction and with that portion btc back, would be able to claim damages for the missing bitcoins.
Anybody can (sponsor) buy MtGox capital (surplus included) and negotiate ~2000-3000$ per bitcoin where sponsor would need ~400-500M$ fresh capital (to take surplus and liabilities) and for that need civil rehabilitation, but nothing change for the creditor claims value (50k JPY/BTC), sponsor is still obligated only creditors claim total value and when settled, sponsor can use surplus free, fresh as their choice. If sponsor is a (group) of creditors, from that ~400-500M$ their claim total on 2014 rates is deducted. Bitcoins balances can't be segretated, otherwise creditors would have it long time ago.
Be careful who use you (creditor) to send umbiguous letters to their lawyers, surveys, without really knowing concrete and detailed plan and what is creditor benefit and how and on what legal grounds they plan to achive it, don't accept diplomatic responses! If somebody want to be a sponsor, I accept it, its a busines, but if nothing change to my creditor claim value with concrete plan how to achive it, it would just further delay distribution! Then its sponsor benefit, not ALL creditors benefit, even though might look like it! Read Bankruptcy and Rehabitilation Acts to learn about trustee duties and responsibilities and how Mtgox trustee have no say in this, trustee only follow court issued order.
Its not only this binding claim value a problem! If we had legal grounds on surplus btc assets, we would be secured creditors and would get portion of non-stolen bitcoin back long time ago either outside of bankruptcy or within, as separate satisfaction and with that portion btc back, would be able to claim damages for the missing bitcoins. I just don't understand people who spent $100k-200k for lawyers blind trust where lawyers just ensure them to think how CR somehow make Mtgox users what are last unsecured non-prority class of creditors into secured creditors with preserved propetorship of Mtgox bitcoin balances, who can claim bitcoin seperatelly either as btc or liquidated value and who could not claim that in the bankruptcy liquidation, but somehow magically in Civil Rehabilitation they can! Based on what legal grounds? Group lawyer told them how would need an court precedent in order creditors get above of 2014 rates claim value!? Precedent? If Mtgox users had agreemant what state how all balances (btc and fiat) are preserved propietorship until user withdraw, we would have aprox 1/4 btc long time ago and no precedent is required for that, (I could tell them this for free).
MtGox case were true Caveat Emptor. Finally, we all bought and sold bitcoin what was not actually fully unspent at Mtgox bitcoin wallets and users monetary balances did not reflect fully MtGox bank account balances.
04/22. I tried to discuss at mtgoxlegal group about counter-arguments what would overturn this major problems in order to help group lawyers, even we end up with nothing, but many misunderstund and bombarded me with questions to defend this and insulted me personaly, because some are ignorant, arrogant, rude, on ego trip and missed the the point how I must post problems first in order to discuss about valid arguments to overturn it, otherwise they would not understand what I talk about. They asked me even to prove it??? Imagine ignorance! Creditor situation is already funded within Japan bankruptcy and Rehabilitation Acts, Civil and Corporate Code, but I have to prove it to them! OMG, that all I can say on that. Wrong group to discuss obviously!
Even by some magic CR commence (if Tibanne appeal fail), it does not mean creditors get anything above of already approved claim total based on 2014 rates, unless Mtgox trustee state it so and rehabitilation plan is confirmed within 5 months after commencement.
submitted by alfabi to mtgoxinsolvency [link] [comments]

If the price of BTC continues to rise, will Karpelès profit in the end?

So Bitcoin claimants in the Mt. Gox downfall have agreed to receive under $450 per Bitcoin if/when the bankruptcy pays out. If the value of BTC continues to rise, to the point where 100% of genuine creditors can be made whole again, will remaining funds go to Tibanne (Mark K)? Or will he take the remainder and distribute among BTC holders?
submitted by goxburn to Bitcoin [link] [comments]

Sellachi LLP vs MtGox, Discussion of fee

note: I am just trying to help the people who got goxed not advertise any particular law firm. Resources are posted first:
x post from: https://bitcointalk.org/index.php?topic=507274.0
background history on Selachii LLP:
http://imgur.com/XJg8Rxe source: http://wck2.companieshouse.gov.uk/ & search Selachii
'bitcoinsolicitor' on reddit i assume = Selachii representative
link given by selachii to confirm their background/experience:
http://www.sra.org.uk/solicitors/firm-based-authorisation/abs-registe597443.page
links to other related threads:
http://www.reddit.com/MtGox/comments/1zn09i/selachii_trustworthy/
A concerning review on selachii directors brought to our attention by http://www.reddit.com/useDonutmuncher:
"I read the whole thread on http://www.consumeractiongroup.co.uk/forum/showthread.php?367574-payday-loan-taken-out-2-years-ago-now-capital-credit-management-Lasker-International-taking-my-money/page4 when the Selachii directors were (allegedly) involved in debt collection.
It appears Richard Howlett (Capital Credit Management) was working behind the scenes with Simon Taylor (Lasker Int) to get debts paid back but denying they knew about each other. They both are directors of Selachii now. "
Selachii's letter to everyone:
Selachii LLP London 7th March 2014 www.selachii.co.uk
Selachii LLP have now received enquiries from more than 1,000 potential Claimants following the collapse of the MT Gox Bitcoin exchange. We have retained the services of Nigel Power QC and Daniel Rogers of 7 Harrington Street Chambers to pursue these claims. There are obvious advantages in costs for group action or actions to be pursued against Mt Gox (and/or Tibanne KK and Mark Karpeles) for fraud, negligence and/or breach of contract in Japan, the USA and/or England. Because of this, Selachii LLP are in advanced talks with Japanese and US lawyers with a view to combining resources and keeping costs to a minimum.
As Mt Gox have filed for bankruptcy protection in Japan, it is important to realise that establishing liability against the company may not necessarily result in the recovery of damages, a position which will be carefully monitored. As in all litigation, there is a cost risk for a Claimant if that Claimant were to lose the litigation. However, we are examining options for Insurance policies that would protect Claimants from such costs. Further and detailed advice from Counsel regarding appropriate litigation insurance and also the prospects of success of any claims will be forthcoming to clients in due course. However, more detail regarding the losses is required in order for us to provide this advice and guidance to clients.
A questionnaire has been prepared which will give sufficient information for every potential claim to be assessed quickly. Counsel will provide a full opinion on the merits and advice as to how matters should be taken forward by the 24th March 2014, or 7 days after receipt of the questionnaire, whichever is the later date. The fee for Counsel and Selachii LLP to initially build a case, obtain evidence and undertake fact finding will be 2 BTC per claimant.
This fee will also include:-
(i) The written Opinion from Counsel referred to above, with regular updates as your case progresses. (ii) Management of your claim generally (iii) Negotiation with Lawyers instructed by Mt. Gox (and others) (iv) Engaging in the Bankruptcy proceedings (v) Liaising with law firms in USA/Japan and any other relevant jurisdictions in respect of issuing class action proceedings.
It is felt that at this stage, it will only be viable financially to claimants to join in the class actions if they have 7 BTC or more.
We would be grateful if each client who wishes to proceed would return the signed questionnaire and terms of business (with certified ID as per the questionnaire) by email and post. The claim will then be processed when funds on account of 2 BTC arrive (address TBA).
It is important for claimants to understand that a claim will only be issued if negotiations fail. If it becomes necessary to issue claims, consideration will be given to the filing of class actions in whichever jurisdiction is deemed appropriate for your case. At that stage a further quotation will be provided (if necessary) for the costs relating to litigation, although consideration will also be given to proceeding on a contingency fee basis.
My questions:
Sorry but i think this should be discussed, many young people in bitcoin are likely very new to the legal world:
The pricing is 2 BTC for initial legal costs = $1200, if you get near 1k people that is over 1 million dollars before we get started. Fully aware this would cost huge amounts with individual cases.
1.) Approximately how much extra could be charged from selachii if the MtGox case goes further?
2.) Is the 2 btc refunded if MtGox open for business in say a weeks time & have the ability to pay everyone back?
3.) Why 2 btc? (Dont always have to round up to whole bitcoins if pricing things in bitcoins guys Smiley). There is no price break down for the 2 btc.
Note: I will personally find 2btc amazing value with some kind of result or guarantee btw
4.) Will selachii be waiting to see MtGox's plan for rehabilitation before charging any clients?
5.) Will clients be asked to pay 2btc before knowing insurance policy details/potential success of any claims?
I really think you should hold off on charging 2 btc until we know more from Mtgox or another idea would be charge for an application admin fee & any any initial legal work up to this point. The negotiation cost could come later.
Anyone else have concerns please post.
So everyone knows, im assuming 'bitcoinsolicitor' is connected with Selachii LLP https://bitcointalk.org/index.php?action=profile;u=212314
Selachii response:
The pricing is 2 BTC for initial legal costs = $1200, if you get near 1k people that is over 1 million dollars before we get started. Fully aware this would cost huge amounts with individual cases.
Yes we have been contacted by approx 1000 people. We have people who have lost 1 BTC or less and others who have lost many thousand. For some people unfortunately our proposal will not be viable.
We may release a second proposal for smaller claims at a later date.
1.) Approximately how much extra could be charged from selachii if the MtGox case goes further?
This is impossible to accurately answer. If there are enough validated claims from a certain jurisdiction then there may be enough funds to issue a claim if necessary. If further funds are required then a new proposal will be provided.
Please note that the fee is not just for a potential group action and includes the following:
(i) The written Opinion from Counsel referred to above, with regular updates as your case progresses. (ii) Management of your claim generally (iii) Negotiation with Lawyers instructed by Mt. Gox (and others) (iv) Engaging in the Bankruptcy proceedings (v) Liaising with law firms in USA/Japan and any other relevant jurisdictions in respect of issuing class action proceedings.
2.) Is the 2 btc refunded if MtGox open for business in say a weeks time & have the ability to pay everyone back?
Please see above. If Counsel have started work on your matter and advice has been provided then no refund would be due. It would be brilliant news if everyone was paid back by Mt Gox in two weeks Smiley
3.) Why 2 btc? (Dont always have to round up to whole bitcoins if pricing things in bitcoins guys Smiley). There is no price break down for the 2 btc.
Why does no one query this with fiat currency pricing? Often services and products are for sale for £10 or £100 or £9.99 or £99.99. Rarely do you see fixed fixed service prices at £9.34 or £913.45 etc
Obviously we did have a choice here when pricing our service.
We could have said £749.41 GBP (which is an odd number Smiley) and let people choose to pay with GBP or BTC.
FYI you can still pay the fee in GBP / Pound Sterling.
Note: I will personally find 2btc amazing value with some kind of result or guarantee btw
Thank you - we think so too. It is not cheap to retain the services of a QC and Barrister to work on these matters. However it is simply not possible to guarantee success in any type of litigation.
4.) Will selachii be waiting to see MtGox's plan for rehabilitation before charging any clients?
As per above
Please note proposal includes:
(iv) Engaging in the Bankruptcy proceedings (v) Liaising with law firms in USA/Japan and any other relevant jurisdictions in respect of issuing class action proceedings.
5.) Will clients be asked to pay 2btc before knowing insurance policy details/potential success of any claims?
The 2 BTC is for:
(i) The written Opinion from Counsel referred to above, with regular updates as your case progresses. (ii) Management of your claim generally (iii) Negotiation with Lawyers instructed by Mt. Gox (and others) (iv) Engaging in the Bankruptcy proceedings (v) Liaising with law firms in USA/Japan and any other relevant jurisdictions in respect of issuing class action proceedings.
It is not possible to advise of individual success of claims until Counsel have reviewed full details. This is why we have asked for the 'Information Questionnaire' and any documentary evidence of losses.
Insurance will only become relevant if a claim is issued. If this needs to happen a quote will be provided. The cost will be shared between claimants. More claimants = less to pay
I really think you should hold off on charging 2 btc until we know more from Mtgox or another idea would be charge for an application admin fee & any any initial legal work up to this point. The negotiation cost could come later.
What do you think is a fair fee?
Thank you for your questions and comments.
submitted by MarkKarp to Bitcoin [link] [comments]

Overview of the possible outcome of the MtGox bankruptcy proceeding

This post is to share the overview I made for myself to help estimate a possible outcome of the MtGox bankruptcy proceeding.
Your and my claim (BTC and/or Fiat) has a fixed JPY value.
Find your claim here: https://drive.google.com/file/d/0B7Lr1TBORafyR2wxUnBsVDkxSjA/view
As of today (8th March 2017):
Assumptions: + BTC 1 = USD 1,200.00 + USD 1 = JPY 114.00 + BTCs: 202,185.36428254 Roughly rates: BTC 1 = USD 1,200.00 USD 1 = JPY 114.00 Assets JPY 1,030,895,045 = Account Balance JPY 27,658,957,834 = current BTC assets value Assets Total: JPY 28,689,852,879 Accepted Claims JPY 45,609,593,503 (as of May 2016) JPY 34,884,662 (May 2016 to Sep 2016) JPY 126,630,380 (Sep 2016 to Mar 2017) Accepted Claims Total: JPY 45,771,108,545 (as of Mar 2017) 
74 of 142 petitions of assessment resolved, as of Mar 2017. It is not clear what the maximum additional 'Accepted Claims' will be once all petitions were resolved. So let's add the mentioned JPY 2,223,322,737:
Accepted Claims Total: JPY 47,994,432,282 (after all petitions resolved) 
Current payout, without any returned money from claims against Tibanne, Mark himself, Bitcoin Cafe and even without the USD 2,570,000 from the US government, but also without any pending lawsuits:
 JPY 28,689,852,879 divided by JPY 47,994,432,282 59,78% 
In hope that the the USD 2,570,000 can be added to that calculation:
 JPY 28,982,832,879 divided by JPY 47,994,432,282 60,39% 
There are three quite significant pending claims (from MtGox to other entities) that most likely will not get paid back, but maybe partially:
Currently pending claims: JPY 25,535,295,002 = Tibanne JPY 25,190,162,021 = Mark JPY 60,710,136 = Bitcoin Cafe 
Would be nice to know how those bankruptcy proceedings are getting along?
So the 2,5 mio USD are nice, but not significant. What matters is the current BTC price and the outcome of the other proceedings.
submitted by marcelklammer to mtgoxinsolvency [link] [comments]

Wall Street Journal Article about Mark Karpeles

Actual article behind wall:
TOKYO—Creditors of the collapsed Japanese bitcoin exchange Mt. Gox are on course to miss out on the recent surge in bitcoin prices. Instead, it is the exchange’s former chief executive, now on trial for embezzlement, who could turn a handsome profit.
That is because the claims by people who deposited bitcoin at Mt. Gox are calculated based on the yen value of the cryptocurrency at the beginning of Mt. Gox liquidation proceedings in April 2014. Meanwhile, Mt. Gox, which is mostly owned by a company controlled by former chief Mark Karpelès, is sitting on more than 200,000 bitcoins worth 17 times as much today as they were then.
Bankruptcy-court filings suggest Mt. Gox will have hundreds of millions of dollars left over after paying creditors—money that Mt. Gox’s bankruptcy trustee has indicated would belong to the collapsed exchange’s shareholders, with Mr. Karpelès’s company being the biggest.
“When it’s all sorted out, Karpelès would pretty much get [the] vast majority” of the extra value, said Kolin Burges, a creditor who held 311 bitcoins at Mt. Gox which would be worth about $2.3 million today. “So that seems incredibly unfair.”
Mr. Karpelès has denied all wrongdoing in the criminal case. In an email, he said he believed it unlikely he would end up with any money. He said finding bitcoin buyers would be difficult and it was common for bankruptcy assets to be sold at a fraction of their book value.
“[I]n the case these are sold, I do not believe it would realistically fetch any kind of value high enough to make this an actual issue,” he said.
Bitcoin prices rose to ¥836,761 ($7,365.85) on Thursday afternoon in Tokyo, compared with ¥50,058 at the beginning of the liquidation proceedings in April 2014.
Some lawyers say the Mt. Gox bankruptcy is an example of how existing laws aren’t yet fully adapted to issues involving virtual currencies. When a bank fails, governments and courts have well-established procedures for refunding depositors and apportioning losses if the bank’s assets fall short. But they have little experience when a bitcoin exchange fails, with both assets and liabilities largely in the volatile virtual currency
For anyone who deposited bitcoins at Mt. Gox, “it’s a relatively straightforward reaction to ask for your bitcoins back if any are left,” said Tetsuo Morishita, a professor at Tokyo-based Sophia University Law School. “Under current Japanese statutes, however, you can’t establish ownership well for nonphysical stuff.”
Mt. Gox was once the world’s largest bitcoin exchange. It filed for chapter 11-style bankruptcy protection in February 2014 after finding many of its bitcoins missing. It subsequently said it discovered roughly a quarter of what it had lost, but it was unable to draw up a recovery plan. In April 2014, a court ordered the company to be liquidated. Nearly 25,000 people around the world filed claims.
In 2015, Mr. Karpelès was arrested and charged with embezzlement and creation of unauthorized records at Mt. Gox. He was released pending trial. At the trial’s opening session in Tokyo District Court in July this year, prosecutors said Mr. Karpelès wrongfully spent ¥340 million ($3 million) of customers’ money for his personal use and altered the company’s books to inflate the amount of dollars and bitcoins held by customers.
At the trial, Mr. Karpelès said he was innocent and repeated his contention that the exchange’s collapse was caused by hackers. He said he regretted he was unable to prevent customers’ losses.
The unusual situation of a bankrupt criminal defendant potentially sitting on large gains became apparent at a creditors meeting Sept. 27 attended by about 30 people.
At the meeting, participants say, the bankruptcy trustee, Nobuaki Kobayashi, laid out his thinking, observing that when a bankrupt company turns out to have more assets than liabilities, those surplus assets belong to the company’s shareholders. A representative of Mr. Kobayashi’s law firm declined to make him available for comment.
Mr. Karpelès’s company, called Tibanne, owns about 88% of Mt. Gox.
The bankruptcy estate for Mt. Gox holds 202,185 bitcoins worth about ¥169 billion or $1.5 billion at current rates. Meanwhile, the trustee has recognized claims by exchange customers of ¥46 billion based on the April 2014 bitcoin price, a procedure that lawyers say has a sound basis in bankruptcy law.
After accounting for smaller amounts of nonbitcoin assets and liabilities, Mt. Gox has a surplus on paper of ¥111 billion, or $977 million, that could go to its shareholders, according to a calculation by The Wall Street Journal.
Several conditions have to be met before hundreds of millions of dollars actually make their way to Mr. Karpelès, according to lawyers involved the case. In addition to Mt. Gox, Mr. Karpelès personally and his company, Tibanne, are in bankruptcy proceedings. Trustees handling those cases would have to confirm that the bankrupt entities don’t have significant additional liabilities before Mr. Karpelès receives any remaining assets.
The customary period in which creditors may dispute the trustee’s decisions on claims has ended. Still, some frustrated creditors are talking about ways to get more money—quickly, if possible. “It’s just never-ending,” said Mr. Burges, who flew from London to protest outside Mt. Gox’s Tokyo offices in the weeks leading up to the exchange’s collapse. “We are in a worse position than we were 3½ years ago.”
Mr. Karpelès’s lawyer, Nobuyasu Ogata, agreed on the importance of speed.
“What is most important is to sell the bitcoin before the price falls and ensure that the bankruptcy estate has ample funds,” Mr. Ogata said.
submitted by blossbloss to Bitcoin [link] [comments]

Statement from Mt.Gox regarding the outage yesterday & lag

Source: http://www.facebook.com/MtGox/posts/453409538076792
It’s been an epic few days: What happened?
Dear Mt.Gox users and Bitcoiners,
It’s been an epic few days on Bitcoin, with prices going up as high as $142 per BTC. We all hope that this is just the beginning!
However, there are many who will try to take advantage of the system. The past few days were a reminder of this sad truth.
Mt.Gox has been suffering from its worst trading lag ever, 502 errors, and at one point some users were not able to log in their account. The culprit is a major DDoS attack against Mt.Gox.
Since yesterday, we are continuing to experience a DDoS attack like we have never seen. While we are being protected by companies like Prolexic, the sheer volume of this DDoS left us scrambling to fine-tune the system every few hours to make sure that things don’t go beyond a few 502 error pages and trading lag.
Why has Mt.Gox become the target of a DDoS attack? It is not yet clear who is behind this DDoS and we may never know, but these actions seem to have two major purposes:
  1. Destabilize Bitcoin in general. It is not a secret Mt.Gox is the largest Bitcoin exchange with more than 80% of all USD trades and more than 70% of all currencies. Mt.Gox is an easy target for anyone that wants to hurt Bitcoin in general.
  2. Abuse the system for profit. Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.
What can be done? Believe it or not, there is pretty much nothing that can be done. Large companies are frequently victims of these kinds of attacks. Even though we are using one of the best companies to help us fight against these DDoS attacks, we are still being affected.
There are a few things that we can implement to help fight the attacks, such as disconnecting the trade engine backend from the Internet. By separating the data center from the Mt.Gox website, we will continue to be able to trade.
What can you do? Like our favorite author here at Tibanne says… Don’t Panic!
“Panic-selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals.” (Source: Wikipedia)
I understand that many of you have a lot at stake here, but remember that Bitcoin, despite being designed to have its value increase over time, will always be the victim of people trying to abuse the system, or even the value of Bitcoin decreasing occasionally. These are not new phenomena and have been present since the beginning of time when humans first started trading.
Trade Engine Lags Lag affects everyone, not only us, but also major, world-renowned exchanges like the NASDAQ and NYSE. We can fix lag, but we cannot eradicate lag. Only small exchanges with low volume and liquidity are immune to lag.
Does this mean that we are giving up fighting lag? Hell, no. We are working on it by creating a new trade engine that will solve many problems, but it’s not a magic bullet. We can always try to scale our servers, but we cannot predict what happens from external sources: DDoS, panic selling, immediate increase of buyers, etc. Lag will always be there, but our mission is to make lag as small as possible.
Account Verification As if a major DDoS attack was not enough, we at Mt.Gox are victim of our own success!
Last year, Mt.Gox saw an average of 9,000 to 10,000 new accounts created every month. This number doubled in January, tripled in February, and sextupled in March. In this month alone, over 57,000 new accounts were created!
Our support and account verification team went from four people in January 2012 to twenty-two people working every day of the week. We are now hiring even more people to solve this problem by finalizing some deals with external companies.
Remember that even if you are waiting for your account to be verified, you can still deposit or withdraw funds via our Japanese account and make your trades! (Only accounts that we pro-actively required to be verified are limited to deposits and trade only.)
Finally We have seen a significant amount of comments on the web (various forums, Reddit, etc.) that portray Mt.Gox as a company held by “idiots” and other rather rude words, complaining about inability to deal with lag and other system issues, without understanding the magnitude of work and attacks we are facing every day.
I understand the frustration many of you feel. We hate this situation as well. Since we took over Mt.Gox, we have been through Hell and back and we are still here. We are still the largest exchange with over 420,000 trades per month and USD $121 million monthly trade volume. We have worked our way through all the requirements needed to run our exchange legally.
Now, there are some things we can improve, but so far we are doing an incredible job that no other exchange has been able to do so far. While I understand a certain amount of frustration, realize what we have accomplished. I appreciate all the work you are doing everyday to push things forward and to help secure the future of Bitcoin
And to all of you who are supporting us on a daily basis, thank you! We could not have done any of this without your help!
Source: http://www.facebook.com/MtGox/posts/453409538076792
submitted by papa_doke to Bitcoin [link] [comments]

'Twas the night before Buttmas (xpost, not mine originally)

'twas the night before christmas, and all through the net, no transactions were processed, not even a bet the miners were hung by the fans with aplomb, in the hopes that they wouldn't be unplugged by mom the manlets were nestled all snug in their chairs, losing their wallets to trojaned warez, and tibanne on his throne, ver on a stick, andreas is drunk and getting vitriolic when suddenly on reddit a new thread is hot, "banks buying bitcoin! they're buying the lot!" no evidence is posted to support this notion, but the upvotes have spoken, and caused a commotion the lines on the graph of the unstable price start rocketing upwards, no more rolling the dice! when suddenly, selling, a red arrow shows some actual volume, and transaction lag grows with this kind of movement, so many orders to fill, they knew it their hearts it was the work of a shill with money to burn thanks to the fed, battle plans formed, and the sticky now said: "now voorhees! now fenton! now, charlie and roger! hang on a minute, who isn't a tax dodger? no matter just buy, the beast isn't picky! quick, give it money, while i start the wiki!" their fortunes depleted, pocket money spent, the older among them investing the rent, personal credit forever in red, but totally worth it, the bearwhale was dead and then, a new message, a reply to a post, some economic analysis from user cum-ghost, the rainbows confusing, the triangles scattered, but it turns out none of that had really mattered utility, value, a wave of the hand, none of this matters to freemen of the land a reminder, he posted, as best as he could: "no matter what happens, for bitcoin it's good!" 
submitted by roidragequit to Buttcoin [link] [comments]

CEO who presided over Mt. Gox’s collapse could end up with massive profits #ipnewsflash

This is the best tl;dr I could make, original reduced by 75%. (I'm a bot)
Despite the fact that he oversaw the period when Mt. Gox went from the world's largest Bitcoin exchange to a bankrupt and damaged company, CEO Mark Karpelès could stand to profit hundreds of millions of dollars.
According to The Wall Street Journal, because the value of claims by people who had bitcoins stored at the Tokyo-based site are calculated in the April 2014 exchange rate between bitcoins and Japanese yen, those creditors may miss out on Bitcoin's meteoric rise over the last year.
He's also the CEO of Tibanne, the company that now "Mostly owns" Mt. Gox, and has a cache of 200,000 bitcoins according to WSJ. So if that pool ends up being used to pay out claims, creditors fear Karpelès may get to do so at 2014 rates instead of 2017 rates.
After the site went bankrupt in March 2014, Karpelès told the public and a Japanese bankruptcy court that he had suddenly discovered that cache of 200,000 bitcoins.
As Ars reported in March 2014, Mt. Gox said previously that it had lost 750,000 bitcoins belonging to customers and more than 100,000 bitcoins of its own money.
At current exchange rates, 750,000 bitcoins are worth nearly $5 billion, at about $6,500 per bitcoin.
Summary Source | FAQ | Feedback | Top keywords: Bitcoin#1 Karpelès#2 Mt.#3 Gox#4 creditor#5
Post found in /IPNews, /Bitcoin, /technology, /mtgoxinsolvency, /BitcoinAll, /pancakepalpatine, /TheColorIsOrange and /SkydTech.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

CEO who presided over Mt. Gox collapse could end up with massive profits

This is the best tl;dr I could make, original reduced by 75%. (I'm a bot)
Despite the fact that he oversaw the period when Mt. Gox went from the world's largest Bitcoin exchange to a bankrupt and damaged company, CEO Mark Karpelès could stand to profit hundreds of millions of dollars.
According to The Wall Street Journal, because the value of claims by people who had bitcoins stored at the Tokyo-based site are calculated in the April 2014 exchange rate between bitcoins and Japanese yen, those creditors may miss out on Bitcoin's meteoric rise over the last year.
He's also the CEO of Tibanne, the company that now "Mostly owns" Mt. Gox, and has a cache of 200,000 bitcoins according to WSJ. So if that pool ends up being used to pay out claims, creditors fear Karpelès may get to do so at 2014 rates instead of 2017 rates.
After the site went bankrupt in March 2014, Karpelès told the public and a Japanese bankruptcy court that he had suddenly discovered that cache of 200,000 bitcoins.
As Ars reported in March 2014, Mt. Gox said previously that it had lost 750,000 bitcoins belonging to customers and more than 100,000 bitcoins of its own money.
At current exchange rates, 750,000 bitcoins are worth nearly $5 billion, at about $6,500 per bitcoin.
Summary Source | FAQ | Feedback | Top keywords: Bitcoin#1 Karpelès#2 Mt.#3 Gox#4 creditor#5
Post found in /Bitcoin, /technology, /mtgoxinsolvency, /BitcoinAll, /pancakepalpatine, /TheColorIsOrange and /SkydTech.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

Years after Mt. Gox crashed, CEO could net hundreds of millions of dollars - Creditors to be paid out at April 2014's ~$440 per Bitcoin, not Nov. 2017's ~$6,500.

This is the best tl;dr I could make, original reduced by 75%. (I'm a bot)
Despite the fact that he oversaw the period when Mt. Gox went from the world's largest Bitcoin exchange to a bankrupt and damaged company, CEO Mark Karpelès could stand to profit hundreds of millions of dollars.
According to The Wall Street Journal, because the value of claims by people who had bitcoins stored at the Tokyo-based site are calculated in the April 2014 exchange rate between bitcoins and Japanese yen, those creditors may miss out on Bitcoin's meteoric rise over the last year.
He's also the CEO of Tibanne, the company that now "Mostly owns" Mt. Gox, and has a cache of 200,000 bitcoins according to WSJ. So if that pool ends up being used to pay out claims, creditors fear Karpelès may get to do so at 2014 rates instead of 2017 rates.
After the site went bankrupt in March 2014, Karpelès told the public and a Japanese bankruptcy court that he had suddenly discovered that cache of 200,000 bitcoins.
As Ars reported in March 2014, Mt. Gox said previously that it had lost 750,000 bitcoins belonging to customers and more than 100,000 bitcoins of its own money.
At current exchange rates, 750,000 bitcoins are worth nearly $5 billion, at about $6,500 per bitcoin.
Summary Source | FAQ | Feedback | Top keywords: Bitcoin#1 Karpelès#2 Mt.#3 Gox#4 creditor#5
Post found in /mtgoxinsolvency, /technology, /pancakepalpatine, /TheColorIsOrange and /SkydTech.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

We are suing MtGox - All their assets could be frozen, but there is a chance we can get our USD back, unfortunately not our bitcoins.

I am part of the group. I am not sure if this was posted already, so I registered, and here it is. It doesn't look good for MtGox, we have a hard time contacting them as they don't have a physical office address anymore. It looks like MtGox artificially increased their bitcoin volume, as getting bitcoins back would be impossible (more bitcoins, means less USD, is an easier case for MtGox). I suggest that you sign up on bitcointalk if you have over $10K in MtGox. We won't be able to get everything back, but it's better than nothing...
Source: bitcointalk
I have contacted the offices of my law firm (REDACTED) in Tokyo to begin proceedings to sue Mt.Gox / Tibanne Ltd / Mark Karpeles for my USD funds. He advised me that suing for USD is much more reliable than suing for BTC (since the price varies and bankruptcy collection on BTC has an unclear legal process). Given the liquidations we see on MtGox we believe that there are likely other large plaintiffs filing suit, so we want to move quickly.
If you are interested in being co-plaintiffs in this suit, please PM me (I'm happy to split legal costs), and I will put you in touch with the partner I am dealing with. Note that you will need to provide full proof of identification as well as proof of account ownership on Gox (to be provided to the law firm, not myself).
In general, a class action type suit is most likely to get us "smaller" holders a larger percentage of our funds than if we filed separate law suits.
If it happens that Mt.Gox enters into bankruptcy (likely as a result of a preceding lawsuit), the firm is experienced in bankruptcy negotiations/law to maximize our tier on collections. Hopefully we can collect before that because Japanese bankruptcy law is neither well defined nor quick.
We are looking to finish collecting plaintiffs by EOD Friday JST, and file a case as early as we can get the paperwork together next week.
EDIT: I've received a HUGE number of PMs, so it's going to take time for me to get back to everyone. I stated above that we want to get everyone in by tomorrow, but given the number of people and the amount of money some of you have noted, I think it will take through the weekend to get it all straight. My attorney in Tokyo is obviously asleep now, but here are the points I will clarify with him tomorrow...
  1. What exactly are the terms of suing for any existing BTC holdings? My understanding when speaking with him is that he was not interested in suing for BTC for a few reasons - a. Any collection of actual BTC (ie property) is a different collection process at judgment time. b. That BTC may not exist and you may not be able to sue other assets at value if you are suing for property. c. The valuation of BTC would be at the time of judgment - not the price on eg. BitStamp pre MtGox announcement nor on filing day. From his description of qualified plaintiffs, I strongly suspect that he wants people suing for USD entirely (...and he's probably looking out for his commission as well, TBH). In any case, I will clarify with him tomorrow. Maybe we can make it people with (at least) 10K USD, and also whatever BTC - but I am not optimistic.
  2. What are the fees? I've worked with the firm in the past and they charge ~10% on judgment collection (contingency). There are usually also some non-contingent fees paid up front, but given that we have a number of plaintiffs seemingly ready to go with significant holdings I may be able to get him to waive non-contingent (up-front) fees. In any case, they would amount to much less than the 10% even if we do pay it.
  3. What exact evidence of identity and ownership do you need to begin? I'm guessing this will entail a scan of your ID and a screenshot of your account, and some forms to fill out / sign / fax or scan, but you may need something notarized, so hold off on that until he responds.
  4. Is there any limit on the number of plaintiffs you will represent? He did not indicate there was, but I gave him an estimate much lower than the responses I've received.
Also, please PM me with your email address so the attorney can email everyone directly when it's all decided.
Anything else I'm forgetting?
UPDATE Everyone, thank you so much for getting in touch with me. I am sorry I wasn't able to accommodate many of you. I wasn't able to add as many people as I had initially hoped (since it's not a real class action), and the lawyer was quite strict about suing for cash amounts. Some of you had very heartfelt stories - thank you for sharing that, honestly, and I intend on responding to everyone who messaged me individually.
For those who I've PM'd with details, please submit the documents this weekend (per the email you should get). For everyone else - I really wish you guys the best of luck. There are plenty of lawyers in Tokyo that speak english (check the big international law firms). Any firm that size will have litigation specialists, and that's all you really need.
Best of luck. PS. To the press who have contact me - thank you for your
PMs, but I was specifically instructed NOT to discuss this with the press.
PPS. I changed the title to correct that this is not technically a "class action" suit.
submitted by We-Are-Suing-MtGox to Bitcoin [link] [comments]

CEO who presided over Mt. Gox’s collapse could end up with massive profits

This is the best tl;dr I could make, original reduced by 75%. (I'm a bot)
Despite the fact that he oversaw the period when Mt. Gox went from the world's largest Bitcoin exchange to a bankrupt and damaged company, CEO Mark Karpelès could stand to profit hundreds of millions of dollars.
According to The Wall Street Journal, because the value of claims by people who had bitcoins stored at the Tokyo-based site are calculated in the April 2014 exchange rate between bitcoins and Japanese yen, those creditors may miss out on Bitcoin's meteoric rise over the last year.
He's also the CEO of Tibanne, the company that now "Mostly owns" Mt. Gox, and has a cache of 200,000 bitcoins according to WSJ. So if that pool ends up being used to pay out claims, creditors fear Karpelès may get to do so at 2014 rates instead of 2017 rates.
After the site went bankrupt in March 2014, Karpelès told the public and a Japanese bankruptcy court that he had suddenly discovered that cache of 200,000 bitcoins.
As Ars reported in March 2014, Mt. Gox said previously that it had lost 750,000 bitcoins belonging to customers and more than 100,000 bitcoins of its own money.
At current exchange rates, 750,000 bitcoins are worth nearly $5 billion, at about $6,500 per bitcoin.
Summary Source | FAQ | Feedback | Top keywords: Bitcoin#1 Karpelès#2 Mt.#3 Gox#4 creditor#5
Post found in /nottheonion, /technology, /mtgoxinsolvency, /BitcoinAll, /Bitcoin, /pancakepalpatine, /TheColorIsOrange and /SkydTech.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

[MTGOX] Tokyo District Civil Court 20th Circuit - Civil Rehabilitation Proceeding translation from Japanese

As requested by ##mtgox-chat, I'm translating the original Japanese bankruptcy court filing document. I'm not a lawyer, and I'm not a native Japanese speaker, so I probably made lots of mistakes. But if you want to buy me a beer for translating this legal stuff: 18fgJ9ZbyL4U5KB2UxQLSDCypwynBKpUrM
Original starts from Page 9 of http://www.scribd.com/doc/211626536/Karpeles-Declaration
February 28, 2014 Tokyo District Civil Court 20th Circuit - Civil Rehabilitation Engagement 〒 150-0002 2-11-5 Shibuya, Shibuya-ku, Tokyo MtGox K.K. Representative Robert Marie Mark Karpeles 〒 106-0032 1-9-10 Roppongi, Minato-ku, Tokyo ARK Hills Sengoku Yamamori Tower 28F Baker & McKenzie law firm Foreign Petitioner Lawyers Yamamoto Foreign Petitioner Lawyers ??? Phone: 03 -6271-9900 (main line) FAX: 03-5549-7736 〒100-0005 2-3-2 Marunouchi, Chiyoda-ku, Tokyo Kawai 2 Yusen Bldg. 4th floor (law firm name) LLP Petitioner Lawyers (name) Petitioner Lawyers (name) Phone: 03-6267-1241 FAX: 03-6267-1210 Attachments * 1. Introduction (Common with the former Someishiryou 2) credentials * 1. Resolution of the Board of Directors * 1. Power of attorney EXHIBIT A PURPOSE OF THE COMPLAINT For petitioner, I will start the rehabilitation proceedings. REASON FOR THE COMPLAINT Article 1 - Facts which will be the cause of the first rehabilitation proceedings Petitioner (debtor) MTGOX K.K. (Referred to as "petitioner" below) states its assets & liabilities overview currently as follows, since it is not able to repay the debts and obligations on their due date without causing harm. To prevent disruption of business, the petitioner files for bankruptcy protection. A full description of the circumstances that led to this will come later. Article 2 - Outline of the debtor Company (1) Corporate Profile (1) Company name The name is "Kabushiki Kaisha MTGOX". (2) Corporate objectives ① IT (information technology) system development and the consulting thereof; ② Internet/web contents development, and the consulting thereof; ③ Planning of server, development, design and computer; ④ Internet site management and control; ⑤ Any and all business incidental to each item before (3) The amount of capital and stock Total Shares Authorized 10,000 Total Shares Outstanding 500 Total Paid-In Capital ¥ 5,000,000 (4) Date of Establishment August 9, 2011 (5) Company Shareholders There are 2 shareholders of the company. The representative of the petitioner Mark Karpeles (hereinafter referred to as "the petitioner's representative.") holds 100% of the outstanding shares of TIBANNE K.K. (hereinafter referred to as "parent" or "TIBANNE" below), which holds 440 shares (88% of the outstanding shares). Tibanne K.K. 550 shares (88% of outstanding shares) Jed McCaleb (an individual) 60 shares (12% of outstanding shares) (6) Company Officers Representative Director Robert Mark Marie Karpeles The above-quoted claimant representatives, is also the sole shareholder and president of the parent company. (7) Head Office Location Shibuya 2-11-5, Shibuya-ku, Tokyo (2) Petitioner's Activities The main business of the petitioner is a operation of online exchange exchanges can buy and sell bitcoin or the like, which is a virtual currency. (3) office facilities, etc. The sole business facilities of the company, is the Head Office 2-5-11 Shibuya, Shibuya-ku, Tokyo. The parent company also leases the same office, and the petitioner sub-leases the office from TIBANNE. (4) employees The petitioner does not directly employee any employees, as the petitioner has entered into an operating agreement with the parent company, and is receiving services from the parent company. (There are a total of 32 full-time employees, contract employees, and part-time employees.) (3) Balance sheet of the Petitioner for the most recent two terms, one of each assets and liabilities (1) Balance sheet since the establishment of the petitioner, are as Someishiryou who submitted, but the summary is as follows. (Thousands of yen) Balance Sheet August 9 2011 - March 31 2012 April 1 2012 - March 31 2013 Current assets 95 3,838,803 Total assets 95 3,838,803 Current liabilities 21,232 3,831,393 Total liabilities 21,232 3,831,393 Total net assets ▲ 21,137 7,41 Total net assets and liabilities 95 3,838,803 (2) Income statement for the most recent two quarters 2 Income statement since the establishment of the petitioner, are as Someishiryou who submitted, but the summary is as follows. (Thousands of yen) Income Statement August 9 2011 - March 31 2012 April 1 2012 - March 31 2013 Gross revenue 1 0 135,072 Gross profit 0 131,085 Operating income (loss) ▲ 26,138 21,205 ordinary income 0 29,395 Net income (loss) ▲ 26,137 28,548 3 Contents of assets The inventory of assets, the status of the primary assets, and the contents of the assets of the petitioner are as follows. (Current assets) (1) cash deposits Petitioner's holds cash deposits in banks and other payment service providers totaling 513,988,952 JPY. (2) BTC account Petitioner operates a bitcoin exchange which has users conducting transactions (Hereinafter referred to as "Users") for the buying and selling of bitcoins. Petitioner receives approximately 0.6% comission of the total bitcoin trades. This is considered as property by considering the value of the bitcoins. At the time of this statement, approximately 901 million JPY worth of bitcoins. (3) Inventories 18,627,790 yen worth of OTP cards, 3,419,440 yen worth of Yubikeys, total of 22,047,230 yen. (4) advances Petitioner has participated in the annual event that takes place in France called E LOGIC that target people who are interested in computer, 7,968,000 yen for the prepaid expenses. (5) Short-term loans Complainant, Tsuke-kin credit for this and costs, incurred with respect to affiliates of petitioner.801,249,564 yen Short-term loans total. (6) other deposits Deposits from users who are at the bank other than the petitioner, 1,384,057,302 yen third-total deposits. (Fixed assets) (7) furniture and fixtures PC, fixed assets, such as equipment of the petitioner, server hardware, etc. totaling 107,510,694 yen. (8) development costs Software development costs, development costs, in-house development costs, mobile phone development costs, and the like totaling 91,964,675 yen (9) Deposit 540,000 yen deposit of rental space. (10) pledged insurance Seizure 10,586,875 yen based on provisional disposition order Total assets 3,841,866,163 yen Liabilities of petitioner are as follows. (1) Accounts Payable For the amount of accounts payable, there is something that is not in part, but it has been found to generally, totaling 19,033,902 yen. (2) BTC temporary receipt - 901,952,870 yenr In the same amount of money, a there is a current assets account (3) Deposits 5,502,576,538 yen Approximately 127,000 users have money on deposit. 
submitted by jasonmaurice to Bitcoin [link] [comments]

CEO who presided over Mt. Gox's collapse could end up with massive profits

This is the best tl;dr I could make, original reduced by 75%. (I'm a bot)
Despite the fact that he oversaw the period when Mt. Gox went from the world's largest Bitcoin exchange to a bankrupt and damaged company, CEO Mark Karpelès could stand to profit hundreds of millions of dollars.
According to The Wall Street Journal, because the value of claims by people who had bitcoins stored at the Tokyo-based site are calculated in the April 2014 exchange rate between bitcoins and Japanese yen, those creditors may miss out on Bitcoin's meteoric rise over the last year.
He's also the CEO of Tibanne, the company that now "Mostly owns" Mt. Gox, and has a cache of 200,000 bitcoins according to WSJ. So if that pool ends up being used to pay out claims, creditors fear Karpelès may get to do so at 2014 rates instead of 2017 rates.
After the site went bankrupt in March 2014, Karpelès told the public and a Japanese bankruptcy court that he had suddenly discovered that cache of 200,000 bitcoins.
As Ars reported in March 2014, Mt. Gox said previously that it had lost 750,000 bitcoins belonging to customers and more than 100,000 bitcoins of its own money.
At current exchange rates, 750,000 bitcoins are worth nearly $5 billion, at about $6,500 per bitcoin.
Summary Source | FAQ | Feedback | Top keywords: Bitcoin#1 Karpelès#2 Mt.#3 Gox#4 creditor#5
Post found in /btc, /CryptoCurrency, /IPNews, /Bitcoin, /technology, /mtgoxinsolvency, /BitcoinAll, /pancakepalpatine, /TheColorIsOrange and /SkydTech.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

In 1986, the Bayer Trademark was bought for $25MM. Names are inherently valuable. We need to Trademark Reddcoin.

TL;DR - Read the title (reddki taught me that one)
Tibanne registered the trademark for Bitcoin, and declared it free to use by anyone for anything. A wonderful publicity stunt performed by some of the grandest thieves and of our time. (Read on, in addition to their goxxing, they are profiting from the Bitcoin TM too)
I propose that we pool funds (or IPCO funds?) to register the reddcoin trademark.
(This is a question for the devs) Can we figure out a way to intertwine our PoSV RDD to ownership of reddcoin assets, like the reddcoin trademark? All reddcoin owners (stakeholders) would have unlimited license to use the reddcoin trademark for any reason. That way, anyone wishing to use the reddcoin name would need to buy at least 1RDD to become a stakeholder.
Shared ownership by all stakeholders would also prevent the loss of the trademark or any other reddcoin assets. Tibanne is selling the Bitcoin trademark as a part of their bankruptcy proceedings. So, who knows what will happen with that.
If our PoSV coins were tied to asset ownerahip, just like an adversary would have to own 51% of reddcoins to attack the blockchain, similarly, a single entity would need to purchase a majority stake to be able to control the reddcoin trademark, or any other reddcoin assets.
Instead of just a online community supporting reddcoin in and of itself, we could become a public organization, whose stakeholders collectively own real property that adds intrinsic value to the organization, and thus, the coin.
I think this would be an assertive move to strengthen our coin and secure our brand, which would get some media attention.
Reddki is tipping top contributors tomorrow so let's get a constructive conversation going here!
submitted by TheSciNerd to reddCoin [link] [comments]

Response to recent Ripple drama

tl;dr= Jed is brilliant and he feels it's important that we all know that. His motivations are the only thing I question.
Hi, I'm Frank Martinez; CEO and founder of Dollero. I started this company with one of the most brilliant people I've ever met, Jon Owens. Neither of us is perfect, but we have a vision for the world that fits perfectly with Ripple. Our first products will be coming out this year. This is my analysis of the latest postings from Jed McCaleb, a former RippleLabs co-founder.
RippleLabs founders hold XRP for a number of reasons and holding it for the time being is important for the stability of the system. If they were greedy, they would have dumped when XRP was trading at ~20/1btc.
Jed's so called immense respect for the community would not have been dumping. Insider accounts, aka friends of Jed, were selling XRP for the 2-3 weeks prior to Jed's announcement. It was plain as day in the order book. Tanking the price by announcing his future dump in the way he did was an offensive play more on XRP holders than RippleLabs. He just basically cut the value of every XRP investors account. That's his definition of considerate? He ended his comment with "Just FYI". Did that stand for Fuck Your Investment?
Insider trading and market manipulation is what this is all about. And it's about making Jed seem like the hero and RL like greedy pigs. That's an emotional play though, dig deeper and you'll see what I mean. The truth is much more self serving.
What's his alternative? Create a system like Ripple that doesn't have it's native currency with a portion allocated to the founders. Let me guess, the first people in that system will be able to mine/buy/whatever the currency before everyone else. How much will Jed have, directly or indirectly? How much bitcoin do the earliest or early adopters have, % wise? Tough to tell with the nature of bitcoin and it's lack of transparency, but we know that early analysis of btc holdings resulted, quickly, in distribution to many accounts thus obfuscating the actual holding of those users. My guess is it will be tough to tell with the nature of Jed's next project. Coinconverter was another project Jed built that also had a lack of transparency. Dark pools of liquidity bought or sold through structured trades for minimal slippage. Maybe Jed doesn't want 8% of the XRP. Maybe he wants 10-13% of his own creation.
Jed's initial post, pre-edit, credited no one other than himself for Ripple. That's a team of what, like 50 people? I'm sure some of the other as brilliant if not more brilliant people there contributed.
RL + bank gateways = wider adoption and actual use cases for more than just the privileged few with access and understanding of these technologies. Wider adoption means everyday people saving money with remittances, which have a direct correlation to healthier children and better chances of pulling out of poverty in many remittance destinations. This work is being done right now by teams building on top of Ripple, like our team.
20% amongst founders is standard. They have more rounds of funding to do. This isn't greed, this is strategy. That 20% is XRP they can dip into to acquire more talented people. They are the only company in the space capable of recruiting top talent because they can raise money because of XRP. The focus is on the system, not XRP; as it should be.
A little perspective on greed/value/exits, whatever you want to call it:
WhatsApp sold for $19B
Oculus for $2B
Atlas for $100M
Instagram for $1B
Apple is worth about $500B Jobs would have been worth, had he not sold some of his stock, $30.7 billion.
MSFT is about $343.82B. Gates is worth about $76 billion and a known philanthropist.
RippleLabs 20% is worth ~ $72.8 million, collectively.
Jed has/had 9b xrp; worth $31.3 million at price right now ($0.003484/xrp).
Jed also started MtGox, sold it in 2011. It's challenging to think that Jed didn't know Mark K of Tibanne, the company who bought it mtgox. Insolvency concerns were known as early as 2011, and now, building another bitcoin project? After leaving bitcoin to improve on the flaws of bitcoin? Scratch my head on that one.
My takeaway: the source of the drama is usually the producer. Jed is trying to cripple RL because he wants more money, otherwise he would work towards making Ripple better. Capitalizing on emotional plays and strategic disruption of RL is confusing and borderline unethical. Both Bitcoin and Ripple are disruptive to the power structures of today's banking infrastructure. So why hurt that; why not strengthen our efforts, collectively? Are we not working towards improving the lives of all people of the world?
submitted by LeTanque to Ripple [link] [comments]

How Do I Get Bitcoins? How Do I Buy Bitcoins? Step By Step Instructions

Bitcoin and crypto-markets are teetering from a massive sell, ... a settlement of about 88% in USD value has been proposed to the victims of the hack by the Trustees of the Japanese defunct exchange. NY based Fortress Investment Group is willing to stake claims on all the 141k BTC by paying out the investors. Fortress claims to make the payout to the investors after acceptance in 3 days.This ... Mt. Gox sold March 6, 2011 to Mark Karpeles and Tibanne company. Not long after, the exchange revealed that the user details of 60,000 Mt Gox users had been compromised. The Bitcoin price on Mt ... Die Spekulationsblase beim Bitcoin und anderen Krypto-Währungen ist offenbar geplatzt, die Kurse befinden sich im freien Fall. Fans können nur hoffen, dass es sich um eine gesunde ... Mark Marie Robert Karpelès wanderte im Jahr 2009 von Frankreich nach Japan aus und gründete dort das IT-Unternehmen Tibanne Co. in Tokio. Mit IT-Wissen und unternehmerischem Geschick erwarb er dort 2011 den Bitcoin-Handelsplatz Mt.Gox. Drei Jahre später gab es offenbar technische Probleme – Karpelès gab seinen Sitz im Vorstand ab, nachdem die Börse im Februar 2014 sämtliche ... It was July 2015, and we were in his cluttered apartment in Tokyo, as his pudgy orange cat, Tibanne, nuzzled at his feet. Oh, and he also had a giant toy train on a makeshift table in the middle of his living room. I was on assignment for Rolling Stone to profile Karpeles, who had become the biggest enigma in bitcoin outside of its mysterious creator, Satoshi Nakamoto. For a time, Karpeles was ...

[index] [35720] [35055] [22898] [40313] [28823] [10224] [40843] [22356] [19597] [36364]

How Do I Get Bitcoins? How Do I Buy Bitcoins? Step By Step Instructions

However, the site abandoned Magic and became a bitcoin exchange, quickly growing to handle 60% of the bitcoin exchange volume, as of August 2013. It was established in 2010. Originally founded by ...

#