Its four years the famous bitcoin exchange, Mt. Gox, was hacked and over 400 million US dollars lost. The exchange was immediately declared insolvent and put under criminal bankruptcy. However, this situation did not give enough room for reimbursement negotiations and the creditors moved to court urging it to put Mt. Gox under civil rehabilitation instead of criminal bankruptcy. Today, the Tokyo District Court has honored Mt. Gox creditors’ plea.
“The petition was heard, and at 5:00 p.m. on June 22, 2018, the Tokyo District Court issued an order of the commencement of civil rehabilitation proceedings for MTGOX. As a result, the previously ongoing bankruptcy proceedings were stayed.” Read a statement on Mt. Gox’s website.
With a civil rehabilitation status, the creditors will have more options to choose from when being compensated. One of those options would be to be paid in terms of digital currency something that would be out of bounds if its status remained as “criminal bankruptcy.”
Previously, Mark Karpeles, the former CEO of Mt. Gox, indicated that he does not need any of the bitcoin billions which will come from the sale of the 160K BTC remaining to be disposed of.
The creditors will be required to file proof of rehabilitation claims before 22nd October this year.
Although the trustee in the rehabilitation proceedings has indicated selling of the remaining coins will not happen anytime soon, the outcome of the rehabilitation process may spell otherwise.
A call center has since been established with Mt. Gox encouraging any inquiries to be made through the call center and refrain from directly enquiring from the Office of the Civil Rehabilitation Trustee.
Call center telephone number: +81-3-4588-3922, Operating hours: Monday through Friday, 10:00 a.m. to 5:00 p.m. (Japan time) is already active according to Mt. Gox.
Under the supervision of Tokyo District Court, Nobuaki Kobayashi, Attorney-at-law who oversaw the liquidation of $400 million BTC and BCH tokens on behalf of Mt. Gox in March, has been appointed a trustee.
Now that the Tokyo District Court has honored Mt. Gox creditors’ plea, do you think the investors will be repaid the exact number of coins they held plus accumulations over time?
Let us know your thoughts in the comments section below.