Mt. Gox Trustee Says Rehabilitation Decisions Have Been Issued to Creditors
Finally, it looks like creditors of the troubled cryptocurrency exchange Mt. Gox is about to have a breath of fresh air after years of waiting.
Decisions Issued Over Rehabilitation Claims
Merely a week after Mt. Gox's trustee Nobuaki Kobayashi claimed that a decision had been made over the creditors' claims, today, the Tokyo Whale (as he's known in crypto circles) has announced that all creditors who filed the claims have received decisions.
The crypto exchange was struck in 2011 with a subsequent crash in 2104, and for the past five years or so, those affected had been in the dark over the reimbursement scheme. By the time of the hack, Mt. Gox was apparently the biggest crypto exchange in the globe handling about 70% of bitcoin transactions.
During the attack, about 24,000 creditors were reportedly affected and lost in a total of up to 850,000 BTC (roughly $460 million by then). Following the failure of former CEO Mark Karpeles (who recently received a suspended prison sentence), Kobayashi was placed in charge of the reimbursement process.
Details Of The Decisions
The traders had a way of registering their claims which were to be looked into by the exchange and a decision be made whether the applications are to be approved or disapproved.
Now, those decisions are out, and according to the document from the trustee, detailed instructions are provided for the applicants of the rehabilitation claims. Notably, some claims may have been disapproved which creditors may not agree with, and hence, will be free to apply for assessment of the claim filed with the court.
However, it's important to note that the timing, as well as the method of the payments, has not yet been decided. According to Kobayashi, the details on the payment methods or when it will be done will follow later in a rehabilitation plan.
It may have taken several years of waiting and waiting for the affected traders to get back their due, but now it seems like it's finally on the verge of happening.
The big question, however, remains whether the settlement will be in cryptocurrency or cash. But either way, today's news most likely will be well-received by creditors given the longevity of waiting.