The cryptoexchange, which was once the biggest in the world, was shut down after it lost 744,000 Bitcoins in a hacking incident. The exchange, however, managed to regain control over 200,000 BTCs.
Luckily, the Bitcoin hardfork, which resulted in the creation of Bitcoin Cash (BCH), has made the exchange rich enough to return the invested amount to all investors. Following the court ruling, the creditors have worked out the plan to return the Bitcoin and Bitcoin Cash held under Court’s oversight.
According to the information available, creditors have laced a repayment scheme, referred to as the civil rehabilitation plan, involving $1.30 billion in Bitcoin (BTC) and Bitcoin Cash (BCH). The amount is expected to be paid to the clients sometime around summer 2019.
Repayment plan
The civil rehabilitation plan, which is just short of announcing a formal bankruptcy within the Japanese legal framework, has been completed this August. The policy was revised by creditors to better reflect the views of investors.
According to the revised scheme, victims of Mt.Gox will receive compensation in Bitcoin and Bitcoin cash (BCH) through the prevailing accounts on various exchanges or pre-approved, new trading accounts.
In this regard, creditors said “We think it desirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily.”
Furthermore, the settlement plan has also resolved the issues related to fiat money. The residual cash held by Gox will be repaid to whom the team managing the rehabilitation process refers to as the “monetary creditors.”
160,000 in BTC and 168,000 in BCH to be paid
As of now, settlement will happen only in the form of BTC and BCH. Altcoins other than BCH is not considered in the settlement scheme. The decision was taken after considering the huge volatility of other altcoins. Creditors believe that settlement in other altcoins may lead to a huge dump and crash in the price. To avoid such untoward incidents, the creditors have decided to stay away from other altcoins.
According to creditors
“There is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins. Therefore, the trustee should proceed with the sale of altcoins with careful consideration of these matters.”
The statement issued this month elaborates on the manner in which 160,000 BTC and 168,000 BCH as well as Gox “derivatives” will be disbursed by the trustee, subject to the final approval of the plan by the court.
Complete details of the plan are expected to be submitted by mid-February next year. Based on today’s traded price, the final settlement amount is expected to be at least $1 billion in BTC and BCH.
Brief history of Mt.Gox
Nearly six years ago, Mt. Gox was the world’s most popular bitcoin exchange, accounting for more than 50% of BTC trading volume. It was shut down after 744,000 Bitcoin was swindled by hackers. Creditors spent years to minimize losses. A year before, the creditors petitioned the bankruptcy management officials to permit the case to be settled under civil rehabilitation.
Earlier this summer, the court allowed the case to be settled through civil rehabilitation process. In the meanwhile, the trustee, Nobuaki Kobayashi, who held over 200,000 Bitcoin liquidated about 30,000 BTCs by spring. The court ruling however prevented Kobayashi from going further in liquidating Bitcoin and Bitcoin Cash (BCH).