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After dabbling in the technical side, I decided to wind down the wallet files that I probably wouldn't do a good job of securely storing and put everything in t

After dabbling in the technical side, I decided to wind down the wallet files that I probably wouldn't do a good job of securely storing and put everything in the biggest exchange instead. 10 years later, I'm still waiting on MtGox bankruptcy proceedings :o)

sidewndr46 3y ago
I don't really understand Japanese bankruptcy law, but the final notice I saw was that the amount of funds missing is insignificant. My guess is that something about the legal system there is allowing them to delay paying out the funds more or less indefinitely.
- Scoundreller 3y ago
  Naw, kinda the opposite. They “found” a significant amount of missing bitcoin. Then bitcoin skyrocketed in value. Technically the creditors losses are “crystallized” at the time of bankruptcy and if the organization wanted to push it, could make the creditors whole and end up with the remaining value. Sometimes this happens in real life where equity holders end up getting some payments post-bankruptcy liquidation. As I understand it, mtgox is going to go through a procedure to pay out the excess to the creditors anyway, which probably further delayed things. Many bankruptcies take a significant period of time. Even Bernie Madoff creditors continue to receive distributions from the estate.
  - sidewndr46 3y ago
    well thanks for the explanation. I see now there is a claim that payments commence by Oct 2023. So we will wait and see about that one.
nico 3y ago
You are very patient Everyone I know who had funds on MtGox at the time of bankruptcy, ended up selling their claim (most to Fortress), for a pretty good amount, in fact more in USD than what their BTCs were worth at the time of bankruptcy
- Scoundreller 3y ago
  Who ended up better off? The claim seller or claim buyer? (Obviously there’s an element of risk and discounting of future returns, but I’m sure the claims buyers know what they’re doing. They’re not in the business of taking Ls)
  - nico 3y ago
    It all depends If the people that sold needed the money, they are for sure better off, even if they got less money than waiting Additionally, it’s impossible to know if they invested it in something that gave them better returns than waiting Fortress might know what they are doing, but for sure they can’t exactly predict the price of BTC or that there would be a pandemic and the behavior of the markets during the pandemic Potentially someone that sold in late 2019 and put their money into TSLA, NVIDIA or even Moderna, might have made more money than and unknown figure they could get when the bankruptcy proceedings finally pay out. If they exit(ed) the market at the right time I think it’s a good trade for both sides, no need to have a winner and a loser
    - Scoundreller 3y ago
      Sure, but you're assuming that the claim seller knew more about future average returns than the buyer. Chances are they didn't, or even if they did, took too little after the buyer's commission and still lost out. But hey, sometimes the hedge fund has a better job acquiring "dumb" money and pays more than claims are worth just so they can get their cut.

sidewndr46 3y ago

I don't really understand Japanese bankruptcy law, but the final notice I saw was that the amount of funds missing is insignificant. My guess is that something about the legal system there is allowing them to delay paying out the funds more or less indefinitely.

Scoundreller 3y ago
Naw, kinda the opposite. They “found” a significant amount of missing bitcoin. Then bitcoin skyrocketed in value. Technically the creditors losses are “crystallized” at the time of bankruptcy and if the organization wanted to push it, could make the creditors whole and end up with the remaining value. Sometimes this happens in real life where equity holders end up getting some payments post-bankruptcy liquidation. As I understand it, mtgox is going to go through a procedure to pay out the excess to the creditors anyway, which probably further delayed things. Many bankruptcies take a significant period of time. Even Bernie Madoff creditors continue to receive distributions from the estate.
- sidewndr46 3y ago
  well thanks for the explanation. I see now there is a claim that payments commence by Oct 2023. So we will wait and see about that one.

nico 3y ago

You are very patient Everyone I know who had funds on MtGox at the time of bankruptcy, ended up selling their claim (most to Fortress), for a pretty good amount, in fact more in USD than what their BTCs were worth at the time of bankruptcy

Scoundreller 3y ago
Who ended up better off? The claim seller or claim buyer? (Obviously there’s an element of risk and discounting of future returns, but I’m sure the claims buyers know what they’re doing. They’re not in the business of taking Ls)
- nico 3y ago
  It all depends If the people that sold needed the money, they are for sure better off, even if they got less money than waiting Additionally, it’s impossible to know if they invested it in something that gave them better returns than waiting Fortress might know what they are doing, but for sure they can’t exactly predict the price of BTC or that there would be a pandemic and the behavior of the markets during the pandemic Potentially someone that sold in late 2019 and put their money into TSLA, NVIDIA or even Moderna, might have made more money than and unknown figure they could get when the bankruptcy proceedings finally pay out. If they exit(ed) the market at the right time I think it’s a good trade for both sides, no need to have a winner and a loser
  - Scoundreller 3y ago
    Sure, but you're assuming that the claim seller knew more about future average returns than the buyer. Chances are they didn't, or even if they did, took too little after the buyer's commission and still lost out. But hey, sometimes the hedge fund has a better job acquiring "dumb" money and pays more than claims are worth just so they can get their cut.