New Documents Published In Mt. Gox’s Second Creditors Meeting, Revealing $623 Million Balance
Nearly everybody in cryptocurrency knows the story of Mt. Gox. As the exchange went down in flames in 2014, investors saw the loss of $450 million in their own funds, which was approximately 850,000 BTC.
The same amount is worth billions now, and trustee Nobuaki Kobayashi has been assigned the project of rehabilitating the funds of these creditors. Former CEO Mark Karpeles was unable to continue to operate the exchange safely, causing the need for a rehabilitation trustee i.e. Kobayashi.
As legal proceedings have continued on this case, Karpeles has already been accused of embezzlement and fraud on the exchange, spending a year within a prison in Japan. However, there has been discussion over whether the security breach that lost hundreds of thousands of Bitcoin was actually malicious.
Karpeles himself was found not guilty of charges that accused him of stealing the funds that were lost. Still, he received a suspended sentence for a guilty verdict, which was in regard to creating illegal records. At this point, there’s still a chance that he could face class action lawsuits within the United States.
Within this case, former BTC-e operator Alexander Vinnik is now involved, as it is believed that he was the recipient of some of the Mt. Gox missing and stolen funds.
Vinnik, who is already involved in connection with several former Soviet paramilitary groups, was recently the subject of an assassination attempt when he was in the process of being extradited to France. The attempt occurred in a Greek prison. Though he was accused of laundering over $4 billion within an exit scam, BTC-e denied the allegations years ago.
According to new documents published on Wednesday regarding the second creditors’ meeting, the original amount that the trustee pegged was about $624 million. However, since the first creditors’ meeting in September last year, that amount has decreased.
As such, the current amount that they have discovered and reclaimed is going to be placed in the trust that will protect it from the ongoing bankruptcy proceedings. Documentation shows that MTGOX Co., Ltd is in possession of over 141,000 Bitcoin and over 42,000 Bitcoin Cash.
There are still ongoing investigations to see if any other holdings are discovered in possession of Mt. Gox. As the funds are secured, the trustee will be responsible for returning the funds to the victims who lost the money during the breach. While this amount seems substantial, it’s a far cry from the amount that was actually lost at the time.
The bankruptcy proceedings are presently at a standstill, as a result of the decision of the Tokyo District Court. They were halted in response to a petition on June 22nd, 2018, which of the creditors filed in order to continue with civil Rehabilitation proceedings. By pausing the bankruptcy proceedings, for now, there is a better chance of securing the funds that are owed to the creditors.
The Civil Rehabilitation process proposal to show the timeline and terms to return the funds is due to be filed by April 26th, 2019. To view the full announcement on the second creditors meeting, visit: https://www.mtgox.com/img/pdf/20190319_announcement_en.pdf.