The U.S. judge presiding over the MtGox bankruptcy proceedings has rejected complaints by CoinLab that proposals to save the exchange are being unfairly executed.
Last year, Seattle-based Coinlab had sued MtGox for $75 million over a botched deal. It called for CoinLab to take over MtGox’s operations in Canada and the U.S. They would have split earnings with MtGox, leveraging the exchange’s brand and technology along with their marketing experience and business relationships. The case is headed for trial in November.
CoinLab had alleged that a proposal let by Sunlot Holdings to salvage the exchange will be forced upon MtGox customers “without any real scrutiny”. CoinLab said it can offer a more competitive bid.
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Incredibly, CoinLab lawyer Larry Engel said at a recent hearing, “If anyone can find the hidden bitcoins, it’s us”, in reference to Sunlot’s offer to find the lost coins as part of its proposal.
Locating the coins has been zealously undertaken by gurus throughout the community, but their investigations have been inconclusive. Perhaps a new entity taking control of Gox and their systems will be better equipped to uncover the coins’ movements. Even if successful, it would be unprecedented to accomplish all of: discovering the identities of those in possession of the coins, exercising legal jurisdiction over them, and enforcing their return. These coins are decentralized. Third parties have no power to intervene even for the greatest of injustices.
Judge Stacey Jernigan rejected CoinLab’s complaint, which was weakened by comments by the appointees overseeing the exchange’s assets from Japan, led by Nobuaki Kobayashi. They expressed an openness toward other proposals and have not committed to Sunlot’s.