Mt. Got Rehab Plan Is Final and Bidding With Approval from Trustee
The rehabilitation plan to refund the creditors of the now-defunct cryptocurrency exchange Mt. Gox has come to its final stage following a recent confirmation from a Japanese court.
On Tuesday, November 16, Mt. Gox trustee Nobuaki Kobayashi announced that the rehab plan originally filed in February its now “final and bidding”. This brings one of the longest running sagas in the crypto space to its final outcome.
Furthermore, it will bring much relief to the creditors who have been waiting for past many years for the court to arrive at a conclusion. Mt. Gox trustee Kobayashi said that he will soon be revealing the “details of the specific timing, procedures and amount” of repayments to the creditors.
However, its unclear as of now whether if the payments will be made in fiat or Bitcoin. The announcement notes that creditors might have to register their bank account details on the website to receive the remuneration or there’s a possibility that they could “encounter difficulties”.
The repayment plan could potentially lead to a distribution of more than $8.5 billion in Bitcoin. Once the largest cryptocurrency exchange in the market, Mt. Gox went defunct in early 2014 after losing the coins of thousands of customers. Although some of the holdings have been subsequently found over the last few years, the reimbursement will only be a fraction of the original amounts held by the creditors.
As of the prior documents, the trustee held a total of 141,686 Bitcoins, along with cash and the Bitcoin Cash coins. The total value of these Bitcoins as of the current price of $60,000 comes at around $8.5 billion.
The recent update from Kobayashi comes following the vote by thousands of Mt. Gox users last month on October 8. A staggering 99% of the creditors who suffered from the collapse of the crypto exchange voted in favor of the rehab plan draft.
Kobayashi said that users who had filed for the claims could receive the amount faster. The “final and binding” ruling was the major hurdle during the entire compensation process.
However, some of the victims linked to the exchange’s collapse had reported infrequent communication during the rehabilitation plan. The Mt. Gox collapse has affected a total of 24,000 with a majority of them holding cryptocurrencies.
The total reported loss was about 850,000 Bitcoin worth $460 million back then and $51 billion as of date. However, Mt. Got trustee Kobayashi has access to only 150,000 BTC to repay to the creditors.