Mt.Gox Invites Creditors Claims, $1bn Worth Crypto To Be Disbursed
Earlier this month, we had reported that Defunct Bitcoin exchange Mt. Gox has put forward the final settlement agreement with the investors, signaling the possible end of a long drawn battle.
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.
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 latest MT.Gox announcement, Victims can now start the process of making claims of the lost cryptocurrencies. Along with this announcement, Nobuaki Kobayashi, Mt.Gox trustee, has dedicated webpage to claim back the funds. Furthermore, post-based offline method has also been introduced to claim the lost funds. However, offline claims require the backing of several legal documents, making the process tedious.
The last date for submitting claims is on October 22nd. Kobayashi stated
“The deadline for filing proofs of claims is October 22, 2018 (Japan time) (must arrive by this date). If proof of claim is not filed by the deadline, then disenfranchisement (i.e., loss of the right to claim) might apply, so please be careful.”
It should be noted that this rehabilitation process is only for individual investors. The date of civil rehabilitation process for Corporations and other legal entities is yet to be announced. The trustee still has control over roughly 170,000 Bitcoin (BTC) and Bitcoin Cash (BCH), worth about $1 billion, as of today’s price. This will be distributed to the legal owners.
Once the claim period ends, the applications will be submitted to Japanese courts on or before February 14, 2019. After the trustee receives green signal from the court, the crypto assets will be distributed to the claimants.
The cryptocurrency market is now debating whether the Bitcoin and Bitcoin Cash may be sold off by Mt.Gox investors after they receive the cryptos in their wallets. With 8-9 months left for final settlement, a majority of investors are only hoping for an end to crypto winter by then.