Coordinator for Largest Group of Mt. Gox Creditors Leaves Post, Sells His Claim

Y Pag, the founder and coordinator of Mt. Gox Legal - the largest group of creditors of the now-defunct Bitcoin exchange Mt. Gox - has quit his post and decided to sell his claim.

Mt. Gox Legal - a cooperative of over 1,000 creditors with claims reportedly totaling more than an estimated 125,000BTC - was formed to seek coordinated legal action to support Mt. Gox's transition from bankruptcy proceedings to civil rehabilitation.

As previously reported, Mt. Gox was notoriously hacked in 2011, with around 24,000 creditors reported to be affected.

Pag, who will leave his role as MGL coordinator at the end of April, also revealed his decision to sell his claim for an instant payout from a buyer offering $600 p/BTC, with a ~33% return in a year.

While offering to put fellow MGL creditors in touch with the buyer, he emphasized it was a highly personal decision.

In his letter of resignation to MGL members, Pag cited his belief that reimbursement is likely to take a further 18-24 months or longer, despite recent indications from Mt. Gox's CR trustee Nobuaki Kobayashi that decisions over creditors' claims had been concluded in March.

Pag gave several major reasons for this belief, foremost that prospective reimbursement and distribution of assets is likely to stall for a significant period of time as Japan's judiciary assesses an outstanding $16 billion claim from CoinLab, which was allegedly filed in February.

As Cointelegraph has previously reported, in 2013, CoinLab - a former business partner of the exchange - originally sued Mt. Gox with a bankruptcy claim of $75 million, claiming breach of contract.

Pag further gave reasons for his distrust of Mt. Gox ex-CEO Mark Karpeles' conduct in the CR proceedings, which he "Suspects will be the source of more costs and delays."

A separate so-dubbed "GoxRising" movement, is being spearheaded by controversial crypto figure Brock Pierce, who has claimed he can reboot the trading platform and accelerate compensation for creditors.