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Brazilian sees opportunity and buys jailed bitcoin from bankrupt brokerage Mt. Gox


Brazilian sees opportunity and buys bitcoins from bankrupt exchange Mt. Gox.
(Photo: Shutterstock)

The bankruptcy of the Japanese exchange Mt. Gox caused great damage to its investors. There is no forecast on the horizon of how – and if – there will be any kind of compensation. This uncertainty, however, became a business opportunity for the Brazilian Rômulo Nesi, who has been buying accounts from former clients of the brokerage.

Catarinense from Florianópolis, Nesi lives today in Europe, with constant displacements throughout the Old Continent – he prefers not to reveal the exact place where he resides today. His eyes and movements, however, are turned to the Land of the Rising Sun, more precisely to the estate of the once largest cryptocurrency broker in the world.

He himself is one of the investment clients stuck at Mt. Gox. This proximity, together with the support of a law firm, allowed him to know the process more closely and see it as an investment possibility.

Investment opportunity

Nesi has been working with bitcoin since 2012 and it is from him that he gets the
most of their income today, trading directly with people (P2P)
or in OTC markets. Two years ago, with his own capital, he started buying portfolios
of former Mt. Gox investors.

The expectation of the managers of the bankruptcy of the exchange is a refund of 14% of the amount invested in bitcoin, and 100% in what is in fiat currency. Most former customers prefer to wait for what will happen.

“But there are people who need the money before, or are already tired of waiting. And there is no way to get the money out of there tomorrow, it will take a long time yet ”, summarizes Nesi about another part of the investors, which is the type of client he seeks.

The Brazilian pays, on average, $ 450 per bitcoin stuck in Mt. Gox. The money from this advance is transferred to the client after the completion of the documentary procedures, which last an average of four weeks.

This value may seem insignificant near the current bitcoin price, but it becomes something more significant when compared to the levels of the beginning of 2014, when the digital currency had an estimated price of around US $ 500, in values ​​of the time – or between US $ 800 and $ 900, considering the current dollar.

High risk

The Brazilian is aware of the risk that such operations represent. The dates for settling accounts with the Mt. Gox bankruptcy are successively postponed by lawsuits. That is, there is a possibility that Nesi will never be able to take possession of the bitcoins of the accounts he has been buying.

He, however, relies on a positive outcome and the appreciation of bitcoin to guarantee the return of his bold investment.

“It will take a few years, but for sure the (Japanese) government will release. And by experience this year, bitcoin will close at around US $ 30,000 to US $ 40,000 ”, estimates Nesi.

In addition to Nesi, there are other actors who try to take advantage of Mt. Gox's bankruptcy. One is Fortress, a United States investment fund that also offers cash in exchange for the bitcoin shares held on the Japanese exchange.

According to the Bloomberg portal, Fortress has been offering $ 1,300 for every bitcoin stuck in the brokerage. In December, for example, that offer was $ 755.

Understand the Mt. Gox case

Mt. Gox marked the history of cryptocurrencies. Founded in 2010 in Tokyo (Japan), in four years the company already brokered 70% of the global volume of bitcoin.

However, in February 2014 the platform went offline, announcing that 850,000 bitcoins and $ 28 million had disappeared due to a hacker attack. The case went down in the history of the biggest thefts in the cryptomercado.

A few weeks later, Mt. Gox announced it had recovered 200,000 bitcoins. The exchange started to make large volume sales at the peak of the cryptocurrency's appreciation, which caused great instability in the sector's prices.

The Tokyo District Court then ordered Mt. Gox to file for bankruptcy, forcing it to return the remaining 170,000 bitcoins to its customers, which represents more than $ 1 billion.

Mark Karpelès, director of the exchange, was even accused of embezzlement and data manipulation and imprisoned for 11 months. Currently free, he has plans to open a new company in Japan, based on blockchain.

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