Tuesday, November 30, 2021

Mt.Gox creditors will receive over $9 billion in bitcoin.

The Takeaway:

A recent filing with the Tokyo District Court reveals that victims of the infamous Mt. Gox collapse may soon receive compensation.

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Mt. Gox creditors are expected to recover more than $9 billion worth of Bitcoin, according to a rehabilitation plan document filed with the Tokyo District Court for the now-defunct crypto exchange. The term creditors here refers to the various victims who lost money when the crypto exchange was hacked in 2014. “The Rehabilitation Trustee would like to express sincere gratitude to all involved parties for their understanding and support,” the Trustee said in the rehabilitation plan document. 

 

The confirmation order is expected to become final and binding in approximately one month.

“Depending on the situation, the confirmation order is expected to become final and binding in approximately one month from today,” the Trustee further added. Once approved, creditors will need to register their bank accounts on Mt. Gox’s online filing system to receive payments. “Rehabilitation creditors unable to log into the system may encounter difficulties in receiving repayments,” the Trustee also said. “It’s a date every market participant needs to keep their eye on,” reportedly said BlockTower Capital portfolio manager Avi Felman.   

 

Mt.Gox creditors will be able to receive about 90% of the assets they are owed. 

Mt.Gox creditors will be able to receive about 90% of the assets they are owed. The total sum held by the Trustee is reportedly valued at over $9 billion, taking into account Bitcoin’s latest all-time high registered earlier this week. 

Mt.Gox went offline in February 2014 after withdrawal problems began as early as February 7, 2014. The now-defunct crypto exchange was also handling most of the world’s Bitcoin transactions at the time—approximately 70% of them. It soon became clear the withdrawal problems were a precursor to something far worse.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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