A group of investors have launched an initiative to save the Mt. Gox Bitcoin exchange from liquidation, saying its shutdown would seriously damage the reputation of the cryptocurrency.
HumanIPO reported last week the Bitcoin exchange had filed for liquidation following difficulty holding meetings with creditors across the world and unrealistic rehabilitation plans.
The company ceased operations at the beginning of the year after rumours of it being hacked resulting in the loss of currency began to circulate.
However, SaveGox has launched an initiative to battle the liquidation proceedings.
“Liquidation is a last resort when all other avenues fail, including rehabilitation. No attempt has yet been made to save Mt. Gox. There has been no audit and until recently we were not afforded any opportunity to make our case to the Tokyo District Court,” the group said.
It said Mt. Gox’s 127,000 customers would be better served by a rehabilitation process. The group said it hoped to provide restitution to customers and restore faith in the 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,” SaveGox said.
It said liquidation would result in the loss of millions of dollars which would never be found.
The group said creditors would receive a meager percentage of their holdings because of the cost of bankruptcy lawyers and a large appreciation rate would be lost due to the conversion of Mt. Gox’s 200,00 found Bitcoin into flat currency.
“Under our proposal, Mt. Gox’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,” the pro-rehabilitation group said.
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