Former MtGox CEO Mark Karpeles stands to make $1 bln in bankruptcy settlement.
The former CEO of the now infamous MtGox Bitcoin exchange has suddenly hit a spot of luck which could turn into a huge windfall. In a cruel twist of fate, the man at the helm of the largest Bitcoin scandal to date may wind up profiting nearly $1 bln post-settlement.
Mark Karpeles, who’d previously been charged with money laundering and embezzlement, was in charge of Mt. Gox when one million Bitcoins were stolen from the exchange. At the time of the filing of the bankruptcy for the company the value was approximately $400 mln.
Creditors being taken
However, the creditors from the bankruptcy and former Bitcoin holders from the exchange had requested to be credited with Japanese Yen, but at the BTC price in 2014 at the time of the event – around $480. One creditor, who lost 311 Bitcoins (worth $1.3 mln at today’s prices) would receive only $130,000. He said:
“When it’s all sorted out, Karpelès would pretty much get the vast majority. That seems incredibly unfair.”
Even after all the creditors are paid from the bankruptcy settlement, Karpeles would be left holding the bag…of cash. With BTC prices rising more than fifteen times since the event, the value of the assets of Mt. Gox are now well over $1.3 bln, meaning that Karpeles would be left with the lion’s share of that value.
When the dust settles, after the former CEO lost $7 bln in user funds, he will likely walk away with $859 mln in net profits.
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Author: Jon Buck