SaveGOX

Mark Karpales CEO of Mt Gox has given up on the idea of rehabilitating the bitcoin exchange in favor of liquidating its assets. He has relinquished control to the Tokyo District Court, which will decide the fate of MtGox in the coming weeks.

We need your help to stop a liquidation, which would be good neither for MtGox creditors nor Bitcoin’s reputation with the general public and regulators!

If you are a MtGox creditor, please click here to support our plan to rehabilitate the exchange, conduct an audit to determine the true status of each customer’s balance, distribute the coin on a pro rata basis to the creditors, and help you recoup the remainder of your losses.

Liquidation is a last resort when all other avenues fail, including rehabilitation. No attempt has yet been made to save MtGox. There has been no audit and until recently we were not afforded any opportunity to make our case to the Tokyo District Court.

MtGox’s 127,000 customers across the globe would be best served by rehabilitation of the exchange.

As recently reported by the Wall Street Journal, Mark Karpales CEO of Mt Gox had been working on such a plan with Sunlot Holdings Ltd., a new company formed by our group of seasoned industry professionals who include digital entrepreneurs Brock Pierce and Jonathan Yantis, venture capitalists William Quigley and Matthew Roszak, and Wall Street veteran John Betts.

Our goal? To provide restitution to customers and restore faith in the digital currency.

If the Bitcoin community can prove to be self healing without government bailouts, the entire ecosystem will benefit, including our portfolio of bitcoin investments.

We believe Mark Karpeles has changed course in an effort to avoid personal liability, but in doing so has sacrificed your interests.

What impact would a liquidation have?

• Millions of dollars worth of lost bitcoins would probably never be found.


• A dangerous precedent would be set for the community sending a message that these enterprises are either too difficult to untangle or not important enough to save.


• MtGox’s creditors would likely receive a meager percentage of their holdings because most of the assets would go to paying bankruptcy lawyers and the like.


• Repayment could take years: Creditors of Japanese companies that go through a bankruptcy process recoup an average of only 3% of their assets after enduring a process that takes an average of 10 years.


• Any appreciation in the value of bitcoins would be lost because of conversion of MtGox’s 200,000 recovered bitcoins to fiat currency as part of the distribution of assets.

Under our proposal, MtGox’s remaining assets would be distributed to customers immediately. Creditors would be made whole over time by sharing revenue generated from business operations and from other recovery programs, such as participating in the upside if they continue doing business with the rebuilt exchange.

We are prepared to invest heavily in this business once we have conducted a full accounting of MtGox’s assets and legal liabilities. When MtGox was hacked, customer balances potentially were altered, resulting in the deficits that forced the exchange to shut down. Until a qualified audit has been undertaken by a suitable internationally recognized auditor, the size of those liabilities will remain unknown.

Our group would like to begin this due diligence immediately. Only then will we know the extent of the risks and the capital required to rebuild the business.

Once the valuation is completed, our goals are to:

1. Remove the information vacuum by disclosing in a timely fashion what happened to the missing bitcoins, the true status of MtGox assets and by providing creditors with audited statements of their balances.


2. Relaunch MtGox with a rebuilt and secure platform that will incorporate security, compliance, treasury and risk functions not previously in place.


3. Administer the recovery fund to repay customers who lost money, with ongoing monitoring by a public auditor.

This process will take time and patience. We need to work with the courts, and within the framework of the civil rehabilitation procedure, which can restrict what we communicate and when.

Understanding your justified frustration over the failure of MtGox, we launched this site to begin an ongoing dialogue with MtGox customers and the Bitcoin community at large. We want your feedback and support as we work through the near-term challenges of our proposed buyout and the long process of rebuilding MtGox.

The survival of MtGox can send a powerful message to the broader public and regulators. Stay tuned to this site for regular updates and thank you for supporting our efforts to rehabilitate rather than liquidate MtGox.

source: http://www.savegox.com/

SaveGOX