Why is so much Mt. Gox bitcoin going to the top 1%?
The wealth distribution in the Mt. Gox bankruptcy estate seemingly mirrors the wealth distribution seen in ‘real life.’ That’s to say, the top 1% own the most Bitcoin . This unremarkable statement, however, is a little less descriptive of the Mt. Gox reality than it initially seems. Before long-awaited payouts commenced this summer, one researcher estimated that the top 1% of Mt. Gox creditors were entitled to the vast majority of its recovery. In the subsequent two years, however, some settlements and negotiations have added some nuance to this sensational claim. Most importantly, there have been years of settlement agreements between victims and institutional buyers. Fortress Investment Group, for example, offered cash payouts for up to 80% of victims’ lost bitcoin. In exchange, those victims signed over their payout rights. As Fortress and other institutional buyers signed settlement agreements, their entitlements skewed Mt. Gox wealth distribution toward the ...