Mt. Gox creditors shouldn’t expect payments anytime soon thanks to CoinLab
CoinLab has increased the amount it is demanding from the failed exchange, which will hold up all other payouts
CoinLab was a partner, of sorts, with Mt. Gox before the cryptocurrency exchange unraveled, leaving countless creditors empty-handed. Since the debacle started five years ago, CoinLab has tried to convince the courts that it is due compensation for the failure of Mt. Gox, and every time the subject comes up, the company wants a larger share. There is now another increase in the amount and all Mt. Gox creditors would do better to find something else with which to occupy their time because they won’t be receiving any payments anytime soon.
CoinLab is now looking for $15 billion in restitution. In addition, it wants about $1.12 billion for each year a decision is not made. That extra money is stipulated as of June of last year, so CoinLab is about to expect a payout of $16.12 billion if nothing happens before this June.
The company argues that it is owed the money because of a contract it had with Mt. Gox. That contract would have allowed it to lead operations for the exchange in North America for ten years, as well as receive a percentage of sales for the subsequent five years. What it fails to understand, however, is that the contract it had with Mt. Gox doesn’t cover losses in the event the exchange goes under.
CoinLab isn’t giving up the fight and has repeatedly said that it will continue to assert its claims in court. However, the trustee assigned to oversee the Mt. Gox payouts, Nobuaki Kobayashi, has said that all of the remaining funds are customer funds – not custodial funds – and that CoinLab isn’t owed anything. It still has the right to fight for what it believes it is owed and, as long as the case is in litigation, Mt. Gox cannot issue any more payouts to creditors.