The Wall Street Journal reports (paywall) this evening that an investor group “with Hollywood ties” is hoping to buy out disgraced bitcoin exchange Mt. Gox for a whole bitcoin.
Yes, you read correctly. One bitcoin, or about $390 at the currency exchange rate.
The investors, one of which included former child actor Brock Pierce hopes to bring the exchange back to life. Other investors in the group include William Quigley of Venture Partners, and John Betts, who previously worked on trading systems at big-name firms like Morgan Stanley and Goldman Sachs.
Such an acquisition would however need to be approved by a bankruptcy court in Japan first, of course.
The investors hope — assuming the acquisition goes through — they’ll be able to pay investors who lost their money back by putting aside 50 percent of transaction fees collected.
Creditors, on the other hand, would have the opportunity to receive what is estimated to be 20% value of their claims back, or the equivalent in equity in the revived exchange.
There’s only one problem: who will trust Mt. Gox anymore following this debacle?
As you may be aware, Mt. Gox announced earlier this year that they had lost upwards of 700,000 BTC (worth hundreds of millions of dollars). They then almost out of thin air found 200,000 BTC some weeks later.
It’s an interesting idea. Not sure how practical, but interesting nonetheless. How do you feel about it?