Japanese judge ends Mt. Gox and begins rehabilitation process
A Japanese judge on Friday closed the bankruptcy proceedings concerning the bitcoin exchange Mt. Gox has stopped and has started a so-called civil rehabilitation. Creditors are happy with the development, but are waiting for actual payout.
In a post on the website of Mt. Gox writes to bankruptcy trustee Nobuaki Kobayashi that he has been named a ‘civil rehabilitation trustee’, which means that he still manages the properties of the bitcoin exchange. In a more elaborate document, he explains that the difference between bankruptcy and civil “rehabilitation” is that claims that are not related to money are converted into money claims in bankruptcy, with the value of that claim taking into account the valuation at the time. that the bankruptcy began. In the civil proceedings, those claims are not converted, which also applies to claims related to bitcoin.
Bloomberg journalist Yuji Nakamura writes on Twitter that creditors will receive bitcoin instead of Japanese yen. In addition, everyone has to re-submit their claims. It can be concluded from the aforementioned document that the deadline for this is October 22. According to Kobayashi, more about this will be announced later on the site of Mt. gox. The document also teaches that there are no plans to rebuild Mt. Gox to function as an exchange again and that there are no plans to sell bitcoins. That did happen between December and February, with around 35,000 bitcoin and Bitcoin Cash being sold. The total supply of bitcoin is said to have been set at approximately 166,000 bitcoin on March 5, which is currently approximately EUR 880 million.
Creditors of Mt. Gox let us know in a message that they see the decision as a victory, but that this will only actually be the case if something is paid out. A rehabilitation plan should now be drawn up, which the judge must then approve again. If that doesn’t happen, the bankruptcy will continue, according to Kobayashi. mt. Gox applied for a deferral of payment in 2014 and announced at the time that a total of 850,000 bitcoins had disappeared. Later, 200,000 bitcoins were recovered.