Mt. Gox Rehabilitation Process Opens For Bitcoin Investors to Submit Proof
Mt. Gox’s Bitcoin Creditors Can Now File Rehabilitation Claims
There’s good news for Mt. Gox creditors today. Creditors who lost bitcoin from the long-defunct exchange can now begin filing a rehabilitation claim online.
The rehabilitation process was recently approved by a Tokyo district court. Creditors should be able to receive compensation in bitcoin – not cash.
Nobuaki Kobayashi, the trustee of Mt. Gox, announced the good news in a note on Thursday, claiming that the online claim filing system is now up and running. Creditors can begin making their rehabilitation claim through the online form. You can make a claim regardless of whether or not you filed proof in the previous bankruptcy proceeding.
This was the logical next step in the Mt. Gox rehabilitation process. The big victory came back in June when a Tokyo district court moved the exchange’s case from a bankruptcy proceeding to a civil rehabilitation process. This meant creditors were eligible to receive compensation from the bankrupt exchange.
Through this new rehabilitation process, creditors will be able to receive actual bitcoin – not cash – as rehabilitation.
There was some controversy over how the rehabilitation process would proceed. Obviously, the price of bitcoin has increased substantially since Mt. Gox went bankrupt in early 2014. A creditor who lost $10,000 of bitcoin during the hack in 2014 might find that same amount of bitcoin worth $1 million today. That’s why creditors wanted to receive their compensation in bitcoin – not cash.
According to Mt. Gox trustee Nobuaki Kobayashi, creditors have until October 22 to file proof that they lost bitcoins during the crash.
Meanwhile, the Rehabilitation Trustee needs to submit a statement of approval or rejection to the court by January 24, 2019.
If you lost online access to Mt. Gox, then you might have trouble proving your bitcoin holdings at the time of the crash. In that case, you may need to submit information using an offline method by sending proofs to an address in Tokyo designated by the Mt. Gox trustee.
The goal of the rehabilitation process is to make creditors whole again. When Mt. Gox when bankrupt in 2014, it led to the loss of 744,000 BTC. In the four years since that bankruptcy, creditors have been unsuccessfully trying to retrieve their funds. The calls for rehabilitation became increasingly urgent in 2017 when the price of bitcoin started to substantially rise.
Ultimately, creditors will want to receive compensation equal to the cryptocurrency they lost during the Mt. Gox bankruptcy proceeding. If you’re a Mt. Gox creditor seeking rehabilitation through the proceedings, then you can begin the online claims process here: https://claims.mtgox.com/assets/index.html#/