November 16, 2017 / 1:22 PM / 2 years ago

Fixing Mt. Gox

(This is a sidebar to go with Special Report - How Mt. Gox’s bitcoin customers could lose again)

By Steve Stecklow

Nov 16 (Reuters) - To solve the Mt. Gox bankruptcy mess, its former chief executive says he is exploring a dramatic solution – reviving the exchange so it can start generating money again.

Mark Karpeles told Reuters he believes Mt. Gox, which collapsed in 2014, could be resurrected under new management and ownership – at a cost of $245 million. He said he would have no role and would only receive “money for required expenses, mostly legal.”

Karpeles is currently on trial in Japan, accused of embezzling money from Mt. Gox and manipulating its data, as well as breach of trust. He has pleaded not guilty to the charges.

He said the $245 million would be needed to set up a fund to cover possible payments to “uncooperative creditors,” to fund a year’s operating expenses and future cash flow, for compliance in the United States, Europe and Japan, and to convince creditors to support the plan.

To raise the money, he proposes either finding a buyer for Mt. Gox or conducting an online fundraiser.

If Mt. Gox were to resume business, as unlikely as that may seem, Karpeles said he would have “no role nor benefit at all, except for the fact people may hate me a little less.”

by Steve Stecklow; edited by Janet McBride and Richard Woods

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