goxdox.org: calling bullshit on behalf of mtgox creditors

mtgox to be acquired by silk road (equity) - are you fucking kidding me?? analysis from leaked japanese court filing PART 1

Saturday, April 12, 2014

Introduction: This plan is bullshit. The sponsors have no philosophy about how an exchange should be run. They promotes themselves as being able to regain the trust of the community because of the excellent public relations team it has--i.e. through deceiving everyone. The public relations proposal in turn consists of nothing but shameless name-dropping of the worst kind. This PR team apparently sees nothing wrong with this Sponsor’s association with Silk Road Equity LLC (I am not shitting you). Their security expert has no background in security. They have not named a general counsel. They want to take all the bitcoins, fund our accounts pro rata, but not let us have them for a year. The most sensible thing they mention is that Mark K can’t be part of management and has to give up his shares, but we all saw this coming. We deserve better and these clowns don’t deserve any shares in Mt. Gox. Fuck them.

Page 1: This page simply states the title of the plan and names Sandlot Holdings Limited of Cyprus as the sponsor (the “Sponsor”). Try googling Sandlot, these bastards are non-existent. The document was also drafted on March 28, 2013. Importantly, the document is labeled “Strictly Confidential,” likely because the sponsor wanted to avoid the headline “Silk Road to Bail Out Mt. Gox” for as long as possible.

Page 2: Page two discusses the overview and current situation. We know what happened: Mt Gox went bust, had a Supervisor appointed to manage the assets. A temporary restraining order and constructive trust have been placed on the assets. Reports required by the court on the state of the assets. The Sponsor mentions they have been assisted by Alpha Plus Law Partners, but later mentions they have no candidates for chief legal counsel. Perhaps they weren’t satisfied with the service they received.

Page 3: Sandlot has been talking to Mt Gox since January 2013 and looking for a way to do business. They make the argument that the value of Mt. Gox’s business is “0” because it has no trust. They state that, after expenses for restarting, only ten percent of the value of the company will be left in the form of assets. This must mean they believe it necessary to spend more than half the 200k bitcoins to get the company restarted as an initial matter. Someone else can clearly do better.

Page 4: Sandlot goes on to discuss how this lack of trust is not something that can be cured by mere consultants and IT professionals. Who can we find that possess the unique, valuable skills and good name required to regain the trust of the bitcoin community? Silk Road Equity. Not joking, but I might as well be. The rest of the page is devoted to discussing Mt Gox’s business model of charging 0.6% per trade.

Page 5: Here they start discussing the players they want involved. For the sake of conveneice, the page-by-page discussion will end and we will focus on the players and rampant name-drops.