Mt Gox Creditors Prepare Claims for Bitcoin Repayments

Bitcoin News | Crypto News | Latest News

In 2014, Mt Gox exchange handled an estimated 70% of the total Bitcoin supply until a security breach led to the loss and/or theft of approximately 850,000 BTC, worth $450 million at the time and billions today.

The exchange filed for bankruptcy, leaving creditors in the lurch ever since, but a new plan for (partial) repayment has now been outlined for those still owed money from the disaster.

Posted on Wednesday on the mtgox-creditors.com website, the ‘Revised Basic Policy for Preparing a Rehabilitation Plan’ outlines a number of changes due to the feedback received from the creditors so far. The plan aims to ensure that the creditors aren’t cheated out of their payments, that the payments are made in a timely fashion and the desired currency, and also lays down the law when it comes to who should and should not get paid in the bankruptcy proceedings.

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

The Plan

1:  The rehabilitation plan should be simple and the implementation should have a high degree of certainty.

This point really ought to go without saying, but given the four-year battle the creditors have fought so far, it’s no wonder that their level of trust in the rehab process is so low. First and foremost among the creditors’ wishes is simply that they be dealt with in a straightforward manner.

2: No distribution will be made to shareholders.

This is an interesting one, and it remains to be seen whether they’ll get their wish. Because Mt Gox simply can’t afford to pay back the full amount, especially given the inflation of BTC the last four years, creditors feel like they should be completely prioritized over the shareholders, and it’s easy to see why.

Shareholders arguably have a measure of control over how the company is run, who’s in charge, and what policies are in place. Other creditors who were simply using the exchange as customers do not, and as such should be reimbursed first.

3: Claims for return of bitcoins (BTC) will be repaid in BCH.

This is for simplicity and efficiency, avoiding bank transfer fees and allowing creditors to receive payment in the same currency they lost. The proposal also suggests that any altcoins (coins other than BTC or BCH) held by the trustee be liquidated for transfer.

4: The full payment to the monetary creditors will be made.

The full payment, in this case, refers to the degree which has been approved in the bankruptcy proceedings.

5: First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan.

Again, this is a straightforward wish that is nevertheless important to make absolutely clear – the creditors have waited long enough, and they want to be paid as soon as possible.

6: If there are any residual assets, or new assets found, additional payment will be made.

This rule also stipulated that an additional investigation for lost BTC will be implemented, and in both cases is probably a precautionary measure to prevent creditors from being cheated in the event of more BTC being ‘discovered’ by the trustee after the payments have already been finalized.

7: No sponsors will be selected in principle except where it is apparent that such a selection would be advantageous to creditors.

Here the creditors oppose the appointment of a sponsor company to support and promote Mt Gox during the proceedings. While not a legal requirement, this is a common practice in Japan – however, the creditors feel that a potential proxy fight over which company gets to sponsor the failed exchange would only delay the payments to creditors and should be avoided.

8: The introduction of systems which allow creditors to obtain their trading records.

As the proposal says, for creditors, the accessibility to their trading record is indispensable for the approval or disapproval of civil rehabilitation plan.

In July, the rehabilitation trustee Nobuaki Kobayashi said that a new system for creditors to file proof for claiming repayments is due for release in August, at which time the creditors may finally begin to see some of their money returned to them at last.

Leave a Comment

Latest Crypto News

How the SEC Actions Correlate With BTC & Market Prices

How the SEC Actions Correlate With BTC & Market Prices

Earlier this week, the cryptocurrency markets slumped: Bitcoin (BTC) lost its $6,500 support, and Ethereum (ETC) dropped well below the $400 mark (rates stand at $6,620 and $319 respectively by the press time). While it’s important

Tether Issues $50 Million Worth of Tokens

Tether Issues $50 Million Worth of Tokens

Tether (USDT) has issued new tokens worth $50 million on August 11, according to block explorer OmniExplorer. In late March, Tether had released 300 mln USDT tokens priced at $1 per token. Over the past 30 days, Tether’s market

bitcoin long live the king

Bitcoin: Long Live The King

If you’re wondering how you should treat Bitcoin, as an investment vehicle, allow me to share with you guys my non-expert opinion. End of story, thanks a lot for reading. FREE CRYPTO COIN JUNKY HANDBOOK

Something’s Brewing at Facebook’s Crypto Division

Something’s Brewing at Facebook’s Crypto Division

It’s not entirely clear what exactly is going on in Facebook’s nascent cryptocurrency division, but several reports suggest that something is afoot. Facebook Meets with Cryptocurrency Project Stellar The first comes from Business Insider, who reports

Everipedia Launches First P2P Blockchain Encyclopedia

Everipedia Launches First P2P Blockchain Encyclopedia

Cayman Islands-based blockchain startup Everipedia formally launched its peer-to-peer (P2P) encyclopedia August 9, a press release confirmed. Designed to be an “autonomous encyclopedia without the need for advertisements or donations,” the project uses the EOS network to function and will reward

Dish Satellite Provider Adds Bitcoin Cash as Payment Option

Dish Satellite Provider Adds Bitcoin Cash as Payment Option

U.S. satellite service provider DISH has announced it has added Bitcoin Cash (BCH) as a payment option and migrated to the BitPay payments provider, according to an official press release August 9. The DISH Network Corporation was among the first

Binance Releases Demo of Decentralized Exchange

Binance Releases Demo of Decentralized Exchange

The CEO of cryptocurrency trading platform Binance Changpeng Zhao announced a demo of the platform’s decentralized exchange in a tweet today, Aug. 9. In a six-minute video attached to the tweet, Zhao presented a “casual, early, pre-offer”  demo of

Intuit Financial Software Patents Bitcoin Payments via SMS

Intuit Financial Software Patents Bitcoin Payments via SMS

U.S. software company Intuit has been awarded a patent for processing Bitcoin (BTC) payments via text message (SMS), according to a filing published by the U.S. Patent and Trademark Office (USPTO) August 7. The patent, which outlines a system

SEC To Decide on 9 Bitcoin ETFs in the Next 2 Months

SEC To Decide on 9 Bitcoin ETFs in the Next 2 Months

The U.S. Securities and Exchange Commission (SEC) is set to make final decisions on nine proposed bitcoin exchange-traded fund (ETF) in the next two months. As first reported Tuesday the U.S. Securities and Exchange Commission (SEC) delayed

Microsoft Introduces Ethereum Proof-of-Authority Algorithm to Azure

Microsoft Introduces Ethereum Proof-of-Authority Algorithm to Azure

Microsoft’s cloud platform Azure has introduced a proof-of-authority (PoA) algorithm on its Ethereum (ETH) blockchain product, according to a blog post Aug. 7. The new Ethereum network algorithm will reportedly allow a “more efficient” way of building decentralized applications (DApps) for private or consortium

US SEC Postpones Decision Regarding Bitcoin ETF

US SEC Postpones Decision Regarding Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the listing and trading of a Bitcoin exchange-traded fund (ETF) until September 30, according to an official document released by the SEC August 7. ETFs are securities that track

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$6,074.08
-6.32%
2
Ethereum
Ethereum
$266.99
-17.18%
3
XRP
XRP
$0.2655
-13.94%
4
Bitcoin Cash
Bitcoin Cash
$496.14
-15.62%
7
Litecoin
Litecoin
$52.205
-13.23%
8
Cardano
Cardano
$0.093506
-18.55%
5
Stellar
Stellar
$0.2165
-9.64%
15
NEO
NEO
$15.077
-20.45%
6
EOS
EOS
$4.389
-14.98%
12
IOTA
IOTA
$0.4210
-23.21%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World


Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK