Below is the first part of an article by Tom Hals from reuters.com. It reads…

(Reuters) – U.S. and Canadian customers of failed Tokyo-based bitcoin exchange Mt. Gox have agreed to settle their proposed class action lawsuits that alleged the company defrauded them of hundreds of millions of dollars.

The class action plaintiffs agreed to support a plan by Sunlot Holdings to buy the shuttered exchange and accept their share of bitcoins still held by Mt. Gox, according to a statement and court filings.

Mt. Gox filed for bankruptcy in Japan and the United States earlier this year after saying it lost some 850,000 bitcoins – worth more than $400 million – in a hacking attack. It subsequently said it found 200,000 bitcoins.

“BEST OPTION”

Once the world’s biggest bitcoin exchange, Mt. Gox is slated to be liquidated after the Tokyo District Court granted the company’s request to abandon plans to revive its business.

In return for settling separate class actions, the U.S. and Canadian customers will share in a 16.5 percent stake after Mt. Gox is sold to Sunlot, a firm backed by child actor-turned entrepreneur Brock Pierce and venture capitalist William Quigley.

 

In addition, the customers will split the 200,000 bitcoins that Mt. Gox said it found after seeking bankruptcy protection, and will also split up to $20 million in fiat currency held by the administrator for Mt. Gox.

Source: http://www.reuters.com/article/2014/04/29/us-bitcoin-mtgox-settlement-idUSBREA3S02W20140429

Marc Primo Pulisci is a Los Angeles based attorney practicing with Initiative Legal Group. Marc Primo Pulisci has been practicing law for over 10 years. Find Marc on Marc Primo TwitterMarc Primo MantaMarc Primo FacebookMarc Primo SquarespaceMarc Primo Dot ComMarc Primo Pulisci Dot ComMarc Primo MyspaceMarc Primo Pulisci BlogMarc Primo WordPressMarc Primo Blog Marc Primo Quora Marc Primo Foursquare Marc Primo Manta Marc Primo Merchant Circle Marc Primo Yellow Book Marc Primo Google Plus Marc Primo Law360 Marc Primo Zoho Docs Marc Primo Blogspot

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