Mt. Gox Victims May Get Their Compensations in Bitcoin by 2019
June 22, The Tokyo District Court put on hold the ongoing bankruptcy proceedings and started civil rehabilitation proceedings for Mt. Gox. Its former customers may be able to recover their lost cryptocurrency four years after the infamous Mt. Gox hack.
The exchange collapsed in 2014 with 850,000 bitcoins losses, which were worth US$ 473 million at that time and it has become the first notable bitcoin theft in history. Since then, legal battles have raged between the exchange and its creditors. The creditors also filed a petition with the district court to change the change the bankruptcy proceedings to civil rehabilitation proceedings in last November.
Nobuaki Kobayashi, the Mt. Gox trustee, has released a statement to update the legal situation of the the firm. He indicated that Mt. Gox has finally started the civil rehabilitation process. Mt. Gox will pay off all the debts to its former customers that affected by the Mt. Gox hack before the continuation of the bankruptcy proceedings.
According to the statement, Mt. Gox creditors will be able to get compensation in bitcoin instead of Japanese Yen as “non-monetary claims are not converted into monetary claims” under the Japanese civil rehabilitation law. Which means Kobayashi cannot sell any of the 137,891 bitcoins in his wallet for Yen from now.
Kobayashi also emphasized that he has no plans to sell any cryptocurrency until all the creditors get their funds, that means at least he won’t sell any BTC until half of 2019.
The victims of the Mt. Gox hack needs to hand in their claims before October 22, 2018. Once the their claims have been compiled and verified, the civil rehabilitation will be submitted to the court by February 14, 2019. That means the creditors won’t be able to sell their bitcoins until half of next year, thus, the big wave of bitcoin selling will not take place in the following 8 to 9 moths.