As you may know in case you follow MT Gox for some time, the company filed for bankruptcy in 2015 and now it is struggling to meet a deadline (October 22) to file for civil rehabilitation claims.
The process, as reported originally by Trustnodes, has been confusing and harsh. Many people who had accounts in MT Gox do not even know their passwords anymore and the whole process has been a maze of puzzling paper claims and emails. All this culminates in the start of further negotiations between MT Gox and Kraken.
The trustee of MT Gox, Nobuaki Kobayashi, has signed a memorandum with the company that operates Kraken (Payward Inc) to start negotiations. According to the document, the parties will discuss future support from Payward In. According to the document, all relations are non-legally binding declarations.
What Does This Mean?
In case you do not follow MT Gox’s story, it is understandable that you would not understand the process very well. MT Gox was one of the biggest Bitcoin exchanges in the world about five years ago and the Bitcoins of the investors vanished as the company went bankrupt.
The whole process was as complicated before as it is now and the company is asking people who filed claims in 2015 to file them again. The company had a partnership with Kraken, so this is why both companies are involved in the story.
Does it make any sense now? The main problem, again using the Trustnodes article as a source, is that a lot of people do not even remember their passwords to access their old accounts and that many clients are simply lost and puzzled (and without their money).
There is some light at the end of this very long and dazzling tunnel, though, as the fact that the MT Gox trustee and Kraken are talking again might mean that there is at least a slight chance that Kraken might re-distribute the crypto funds, as it was meant to be in 2015 before the deal fell apart.
As the creditors of MT Gox are now in profit after the former CEO, Mark Karpeles, has filed for bankruptcy, they have filed for civil rehabilitation and the funds will maybe be distributed in 2019 when the story can finally see its happy ending.
Problems Over Problems
There are, obviously, complications to be taken into account when you actually calculate how much money you owe after so many years. However, it looks like the money that a trustee has sold recently could be used to cover most of the claims, which would pay about $1500 USD per BTC.
However, there are also lawsuits and ancillary claims, so the whole thing is pretty muddy right now and more money can be involved. All the distribution, in case things actually move forward this time, will be made via Kraken, which can speed up the process. If you claimed money via Kraken, for instance, the deposits should be automatic.
When you actually take into account that most of the files are still on paper and that the database of MT Gox was leaked some years ago, the whole thing is a nightmare and would have to take a long time to link it all together.
Because of this, Trustnodes claims, the safer way is to pay people via Kraken as they have their claims which were filed in 2015 with a good level of integrity and this should make the whole process easier.
If you were not directly involved in this story, you might as well simply give up understanding the whole process and if you were involved, then you should pray for Kraken to set things right because it looks a lot like no one should actually trust MT Gox given its history.
Will this story have a happy ending? We can only hope.