Mt. Gox trustee announces approval of rehabilitation plan, meaning creditors could soon receive billions

The Mt. Gox trustee, Nobuaki Kobayashi, announced that he had approved the rehabilitation plan put forth by creditors of the now-defunct cryptocurrency exchange. This means that creditors could soon receive billions in Bitcoin and other cryptocurrencies owed to them.

The Mt. Gox trustee announces approval of rehabilitation plan, meaning creditors could soon receive billions is a news article that discusses the Mt. Gox trustee’s announcement on their website.

 

Creditors of the now-defunct cryptocurrency exchange Mt. Gox have unanimously accepted a proposal to pay them for billions of dollars in Bitcoin lost.

According to Mt. Gox trustee Nobuaki Kobayashi, the draft rehabilitation plan initially submitted in the Tokyo District Court in February was accepted by almost 99 percent of the creditors impacted by the collapse of the Japan-based crypto exchange. Furthermore, he said that claimants representing approximately 83 percent of total voting rights voted in support of the proposal.

Thousands of Mt. Gox users voted on Oct. 8 in favor of the decision, with losses believed to be in the billions of dollars. Once the restoration plan became “formal and binding,” Kobayashi said the distribution of the assets would likely take at least a month. He went on to say that creditors can anticipate to be able to register their bank account information on the website in the near future in order to receive payment.

Mt. Gox was one of the biggest exchanges in the world during the early days of cryptocurrency, having been founded in 2010 by programmer Jed McCaleb and subsequently acquired by Karpelès. Nearly 24,000 creditors were impacted by a 2011 breach and the exchange’s subsequent bankruptcy in early 2014, mostly those who held bitcoin.

These incidents resulted in the loss of 850,000 Bitcoin (BTC), which was worth $460 million at the time of publishing and $56 billion now. However, according to reports, Kobayashi only has 150,000 BTC to reimburse customers.

In June 2018, Japanese courts accepted a petition for the exchange to start civil rehabilitation for Mt. Gox creditors. For different reasons, the deadline was frequently delayed, but in December 2020, the Tokyo District Court approved the latest form of the rehabilitation plan and issued an order enabling creditors to vote on it.

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Mt. Gox’s decision came as the remains of a supervolcano on Kyushu, Japan’s largest island, erupted for the first time in more than five years. Despite El Salvador’s President Nayib Bukele’s suggestion that the country’s volcanoes be used to mine Bitcoin, Japan seems to lack such a system.

Mt. Gox trustee announces approval of rehabilitation plan, meaning creditors could soon receive billions. Reference: mt gox reimbursement.

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