Recent court documents indicate that creditors of the Mt. Gox cryptocurrency exchange may finally be compensated after almost four years since the infamous 800,000 BTC hack in 2014.
Tokyo-based Mt. Gox was the largest bitcoin exchange at the time managing 70% of the total bitcoin transactions worldwide, just a few years after its inception.
The 2014 hack, which caused Mt. Gox to stop trading, exchange service, and file for bankruptcy, has punished the company with continuing lawsuits from its creditors and users.
Civil Rehabilitation Proceedings
A document was posted on the company’s website, on June 22, announcing the start of its Civil Rehabilitation Proceedings appointing Nobuaki Kobayashi, Attorney-at-law as Trustee with powers to manage and sell Mt. Gox’s assets. This will temporarily take the company off its bankruptcy case during which creditors may file for a claim before it resumes.
“It is possible that you will lose your rights if you do not file a proof of civil rehabilitation claim.”
Bankruptcy Creditors’ Interests Secured
According to the Kobayashi document, an undisclosed amount of Bitcoin and Bitcoin Cash were sold to fund payments to creditors who filed proofs of claims during the bankruptcy trial.
The move has become a subject to conjecture and met with raised eyebrows by various concerned entities. An article at www.newsbtc.com reported Kobayashi sold over 30,000 BTC over the span of six months, giving way to speculations that it has influenced Bitcoin price’s slump in the first quarter of 2018.
Claimants are given until October 22, 2018 to file claims.