An ICO-inspired Comeback for Bankrupt MtGox?

An ICO-inspired Comeback for Bankrupt MtGox?

Mark Karpeles, the former CEO of MtGox, has suggested that he is considering reviving the bankrupt exchange which suffered one of the biggest Bitcoin hacks in crypto history. As far-fetched as it may sound, we may be seeing a MtGox Initial Coin Offering (ICO) in the near future.

MtGox History

On his blog post, Karpeles revealed that he is currently exploring the option of reviving MtGox, a one-time leading Bitcoin exchange which was Japanese-based but which eventually collapsed on the back of a notorious series of scandals that included both alleged fraud and hacking.

It has been almost 3 years since MtGox handed over the keys, resulting in a combined loss of hundreds of millions of dollars for its clients. Nevertheless, it is understood that some assets from the operation were retained in trust.

The courtroom became a familiar setting for Karpeles as he defended various lawsuits in relation to accusations of mismanagement of funds.

In addition, some unhappy former clients have been pressing for compensation to reflect current Bitcoin rates. Karpeles’ lawyers, naturally, are arguing the contrary. 

Is Reviving MtGox a Real Possibility?

Karpeles appear to consider a revival of his previous operation a serious possibility through an Initial Coin Offering (ICO). If he chooses to go down that route, what he won’t be lacking is marketing coverage. 

However, it appears unlikely that investors will be attracted to an operation whose unsecured assets could be potentially tied to an individual who is currently being pursued in the courts for damages relating to his previous ventures.  

It appears that Karpeles’ argument before his creditors is that it is in their interests to give him the breathing space necessary to revive the operation, restore its profitability and thus offer a higher likelihood for restitution of loss funds. It will be intriguing to see if he manages to do so on the back of an ICO that seeks to raise funds for a previous operation which has largely been discredited in the public eye.