Zheleznikov and Partners, a Russian law firm, has come out to propose legal action to let its lawyer recover the 200,000 BTC lost in the Mt. Gox hack. The Moscow-based law firm made this proposal on September 12 in a Q&A session with Andy Pag. According to the firm, its lawyers can recover approximately $2 billion worth of BTC for the victims of the hack.
In the Q&A session, Zheleznikov and Partners said that it’s confident in its abilities to recover the lost funds.
Explaining how it intends to recover the funds, the legal team said,
The first step is to initiate a criminal case in Russia relating to Mt Gox. Currently a case does not exist. However, there are other related cases with people in custody, and we believe there is evidence collected by Russian Law enforcement in those cases that relate to Mt Gox. Without a criminal case being started in Russia, this information is not being brought together.
However, the firm noted that it can only achieve this feat by working closely with law enforcement. Through this joint effort, the firm believes it will be possible to take legal action against the Russians that got the stolen money.
A 75% Fee
Also, the firm unveiled that it had already identified some of the individuals that participated in this hack.
Zheleznikov and Partners added that,
We want to make clear that we do not yet know the identities of all persons. We have strong reasons to believe that their identities will be revealed by the police investigation bringing existing information together, but we hope that once the criminal case starts they will come forward quickly and offer to give compensation to victims.
However, the firm’s proposed recovery of the lost funds will not come cheaply. Reportedly, the legal team wants to charge the creditors a fee of up to 75% of the recovered sum.
Explaining why it plans to offer its services at such high costs, the firm said,
A large team of highly skilled legal and cryptocurrency experts will be needed to achieve a successful result and they will all be sharing in the total fee we are charging.
Zheleznikov and Partners further cited that it would only accept payments after completing the recovery process.
The Mt. Gox Fiasco
Reportedly, Mt. Gox holds the record of being the once largest crypto exchange that shut down amidst confusion and anger. The exchange began capitulating in February 2014 before filing for bankruptcy. At that time, Mt. Gox said that hackers had made away with the BTC of almost 750,000 of its customers. On top of this, the exchange noted that it had also lost 100,000 of its BTC holdings. This hack involved almost 7 percent of the BTC available at the time.
Do you think the Zheleznikov and Partners law firm has what it takes to recover the BTC lost in the Mt. Gox hack? Let us know in the comments below.