> That's the only way any bankruptcy law can reasonably work. And yet, in this case, it produces an egregiously distasteful outcome in that the shareholders of MtGox would walk away with the value of over 160,000 bitcoin as a result of what happened.
So the rise in value of bitcoin has made Mt Gox extremely valuable in bankruptcy (possibly more valuable than if it were properly managed from the beginning) and now Mark Karpeles is a billionaire. Is that a correct understanding?
Yes it has made MtGox valuable but not made Mark Karpeles a billionaire.
I can't speak for Japanese law but bankruptcies normally have an overseer, in this case a trustee. They control the assets of the bankrupt companies and decide on how the creditors are paid. Creditors include customers, Mark Karpeles, his investors and debtors, if any. So, customers can still approach the MtGox trustee about the payment.
To reiterate I am not a lawyer, but in most cases they might be able to file a suit against the MtGox estate too.
"Good luck going forward. Considering that you could probably single handedly crash bitcoin with what you have in your wallet... Uh... Please don't?"
The market was recovering from the crash when this happened, and it went down the toilet again right after that.
Funnily it recovered (to die soon after again), but we have seen the Mt Gox weight in action already.
Many people I know who are opposed to this kind of regulatory structure have invested in some way in BitCoin due to their lack of regulatory structure, and some of them have been burned by it.
You can hate the guy for his mistakes, but ultimately this would have been far less likely to happen with a stable currency backed up by a stable regulatory body.
Another take away from mtgox was to keep your coins on your local, not on an exchange.
A woman just yesterday shotup the Youtube offices because her videos were demonetized. Yes, she probably had mental illness as well but I can only imagine how much more some people have against Mark Karpeles.
I feel that it does mean something. While people may want Karpeles to pay for what happened implying violence is OK to "settle the score" is wrong. Those that cause the violence will then spend time incarcerated and they still wont get back their bitcoins or the value of their bitcoins. Correct me if I am wrong, but in the U.S prisoners can only earn so much money while incarcerated.
I guess he might still be facing jail time or threats from the the community, so he has to put on some type of sympathetic face.
The details of the liquidation are unclear. It's reported that they weren't sold directly on the market, but nevertheless extra supply has almost certainly had a dramatic effect on Bitcoin price. It's one of very a few examples of a particular action/event having a direct impact on price.