MT. GOX DRAMA: PIERCE VERSUS KARPELES: Argument Over Purchase And Revival Plan Of Infamous Exchange Plays Out In Twitter ‘Slap-Fight”

Brock Pierce and Mark Karpeles won’t be breaking bread any time soon. That much become increasingly evident throughout the late evening last night as they engaged in a back and forth as to Brock Pierce’s stated intentions to revive Mt. Gox.

As many media outlets have reported over the past 72 hours, Pierce has designs on acquiring the remaining assets and accompanying intellectual property of the defunct exchange and turning it back into a functioning entity again. He’s even detailed his purchase plan, intimating that it was all but a done deal.

It seems that the ‘done’ part of the deal may have been premature.

In a Twitter mentions back and forth, that quickly became very public (how very ‘crypto twitter’ of the two of you) both men stuck to specific positions. Pierce stating that he had an agreement in place and that the transaction was essentially done/imminent. Karpeles vehemently denying any such agreement, defaulting back to bankruptcy statutes and court appointed trustees. Both men staking out diametrically opposed positions.

It left many wondering where each was getting their best information. Accusations flew back and forth throughout the Twitter conversation. Here are a few highlights:

  1. Brock Pierce claiming that a purchase agreement was in place.
  2. Karpeles responding by denying any purchase agreement was even drafted.
  3. Karpeles claiming that Pierce had threatened to take their argument public, which occurred.
  4. Pierce stating that Karpeles had sold his 88% stake and was now backpedaling.
  5. Pierce claiming that Karpeles was attempting to pocket the $700-800 million surplus.
  6. Pierce claiming that Karpeles has a partner who had ‘secretly’ been doing the negotiating.
  7. Pierce finished the Twitter argument by asking Karpeles “aren’t you about to go back to prison?”

The back and forth held the attention of much of crypto twitter. All sorts of interested parties began searching for information to either back up claims that were made or discredit them.

This document showed up in that search that seemed to be of interest, although it doesn’t have any labeling or signatures that would identify it as being some sort of definitive barometer:

The document does reference several different elements of the Mt. Gox debacle at the time (2014) and the interest from ‘Sunlot Holdings Limited’. But those interests were never consummated and ownership of the entities remains in the hands of bankruptcy court trustees.

A bizaare argument and conversation, publicly displayed, doesn’t move the idea of Mt. Gox being revived forward in any meaningful way. Instead, it will only prove to push the possiblity back.

While we understand the idea behind the revival (name recognition alone denotes value) the complexity presented by bankruptcy court laws, the claims of creditors, and the mountain of BTC involved was never going to allow a transaction to be as simple as the headlines claiming, “Brock Pierce to Buy Mt. Gox”.

The twitter slap fight between these two guys is also an embarrassment in and of itself. These sorts of discussions mean absolutely nothing outside of any sort of legal agreement, courtroom, arbitration or any other such legal entity that would have to pass along approval to allow Mt. Gox to be privately held and operated once again as an exchange. Why media reports didn’t think that through is a mystery.

Neither Karpeles or Pierce are well-served by the back and forth, and did nothing more than waste their time and key strokes in an effort to one up the other.

Beyond that, there are some legitimate questions left to be answered. Is there a real purchase agreement out there somewhere? What would any purchase price look like? What sort of assets would be acquired? Specifically, whither the BTC currently managed by the court appointed trustee?

This story isn’t over.