Mt Gox Trustee Submits Rehabilitation Plan; 150,000 Bitcoin to Be Returned to Traders
After several consecutive delays, Mt. Gox users could finally get paid after the trustee submitted a draft rehabilitation plan.
Nobuaki Kobayashi, Mt. Gox trustee, submitted the draft rehabilitation plan on Tuesday, Dec. 15. The draft plan promises to repay the former Mt. Gox creditors using Bitcoin. The rehabilitation plan, which has since been posted on the Mt. Gox website, reveals that the trustee is set to return about 150,000 Bitcoin worth approximately $2.6 billion to the former Mt. Gox users. The announcement reads,
“The Tokyo District Court and an examiner will review the draft rehabilitation plan and determine whether to proceed with the rehabilitation proceedings relevant to the draft rehabilitation plan.”
This indicates that the draft rehabilitation plan is currently being reviewed. If the Tokyo District Court okays the plan, then the trustee will repay the money to the creditors within a specified timeframe.
The move comes months after Kobayashi was given another approval extending the date of filing a rehabilitation plan back in October this year. Kobayashi had been given until Dec. 15, 2020, to file the draft rehabilitation plan. The trustee had previously been given several such deadline extensions in April 2019 as well as march 2020.
Mt. Gox was founded in 2010 and arguably underwent the greatest crypto heist in history. The crypto exchange was hacked on two separate occasions in 2011 and 2011, leading to a loss of about 1.35 million Bitcoin. The second hacking led to the exchange's closure, which catered for about 70% of the total Bitcoin transactions.
Mt. Gox users are yet to receive any management compensation, leading to multiple cases to trace the perpetrators and retrieve the stolen funds.
The Tokyo-based court appointed a Japanese lawyer, Kobayashi, to manage the civil reimbursement process and allegedly has about 150,000 BTC to refund the users. The rehabilitation process is expected to end a protracted legal battle involving the regulators and users.
Mt. Gox is the recent defunct crypto exchange for making positive progress in reimbursement plans. Cryptopia began reimbursements to its users on Dec. 9 after the exchange was hacked last year.