Fortress Investment Group Offers to Buy Mt. Gox Creditor Claims for $900 Per Bitcoin

Michael LaVere
  • Fortress Investment Group buying Mt. Gox creditor claims for $900 per bitcoin.
  • Managing Director says his investment firm is "long-term oriented" and comfortable waiting out the legal process. 

Creditors caught in limbo over the Mt. Gox fiasco can now sell their claim to Fortress Investment Group for a fraction of the value. 

Pennies on the Dollar

According to a letter sent to creditors, the investment firm is willing to purchase claims at a rate of $900 per bitcoin--pennies on the dollar compared to the current price of btc ($12,500 as of writing). 

Michael Hourigan, managing director for the New York-based firm, said they are purchasing the claims for “long-term oriented” investors participating in their bitcoin financial vehicle. Given the uncertainty surrounding Mt. Gox’s legal case, the firm is banking on creditors who are unable or unwilling to continue waiting out reparations. 

Under the helm of Mark Karpeles, Mt. Gox famously shuttered in 2014 after suffering a hack of more than 850,000 BTC. The exchange was forced to declare bankruptcy and has been entangled in a legal battle for the last half-decade with creditors desperately seeking compensation for the stolen funds. 

Hourigan claims to have a personal interest in the situation and that his company is willing to see the process through, regardless of how much longer it takes. 

The letter states, 

“Our investors are long-term oriented, so they are comfortable holding on until the matter is resolved in Japanese court. I’m particularly interested in Mt. Gox because I am a cryptocurrency investor personally. I flew out to Japan to attend the creditors meeting in March.”

Fair Value For Bitcoin

While $900 per bitcoin is a low amount in comparison to the current market rate, Hourigan and his team believe it to be fair compensation given the circumstances. Fortress Investment Group is willing to buy claims for double the price of bitcoin at the time of the hack (~$451) and alleviates creditors the continued burden of the case. 

The letter, which was reportedly individualized to a creditor’s claim amount, continues, 

“Based on our research we’ve set a price for claims which we think is fair to creditors and fair to our investors. We review each claim individually, but are now generally able to offer $900 per BTC claim or roughly 200% of the bankruptcy value (which was $451 per BTC claim).”

The note is signed by Michael Hourigan. Interested creditors can find a reproduction of the letter published by CoinDesk.