Mt. Gox, which is the Bitcoin exchange company that filed for bankruptcy a few weeks ago, might be on the road to recovery.Â â€œA group of investors with Hollywood ties is seeking to revive bankrupt bitcoin-trading exchange Mt. Gox,â€ as reported by the Wall Street Journal in an April 11, 2014 article.
Mt. Gox was forced to file for bankruptcy because it faced a financial crisis when about 750,000 bitcoins, which were owned by customers, had disappeared when an unauthorized user had gained access to the online exchange system. Moreover, an extra 100,000 bitcoins that were owned by Mt. Gox disappeared. Furthermore, the exchange was able to recollect about 200,000 of these missing bitcoins.
This group of investors proposed to pay about $400 for each bitcoin. But before this deal can be completed, Japanâ€™s court must approve it since Mt. Goxâ€™s bankruptcy was filed in Japan. Prior to the filing of the bankruptcy one bit coin was worth over $1,000.
The investors are trying to bring bitcoin back to life and revive the virtual currency exchange.Â In addition, they want to allocate about half of what it recovers from the exchange to repay those customers who lost bitcoins, in addition to its creditors. The group offered to pay the price that it did because while 200,000 bitcoins were recovered there are still over 500,000 bitcoins that are unaccounted for, which are estimated to be valued at about $220 million.
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