On Friday, Japanese court ruled to pull Bitcoin exchange Mt. Gox out of bankruptcy. Mt. Gox starts civil rehabilitation proceedings. It means that Mt. Gox investors may get their money back. At least $1 billion worth of cryptocurrency will be paid back to the exchange former customers.
Mt. Gox Investors May Get Their Money Back
Mt. Gox used to be the largest Bitcoin exchange in the world. It collapsed in early 2014 after it had lost all the cryptocurrency — 850,000 Bitcoins. The Mt. Gox hack is still considered to be the biggest theft of Bitcoins in history. Later 200.000 Bitcoins have been found by Mt. Gox’s CEO Mark Karpelès. Since that time that money had been frozen in the Tokyo-based company’s bankruptcy estate.
According to many analysts, the sale of bitcoins, which was carried out earlier this year by trustee Mt.Gox Nobuaki Kobayashi and provoked a Bitcoin price collapse by 75%.
However, the Mt.Gox bankruptcy trustee will not be able to sell and distribute among the creditors the bitcoins of a non-functioning company.
Everything changed last Friday when Tokyo court halted the bankruptcy proceedings and started Mt. Gox civil rehabilitation proceedings.
The announcement, published on the Mt.Gox website, describes the stages of the process of civil rehabilitation.
The key conclusion from the published document is that trustee Mt.Gox Nobuaki Kobayashi will no longer sell bitcoins to compensate losses of the exchange’s creditors.
Now, creditors can legally claim damages in bitcoin equivalent, since the process of civil rehabilitation does not involve the mandatory sale of bankrupt assets.
Mt. Gox investors who want to receive compensation in bitcoins will have to reapply until October 22. Creditors will receive bitcoins (rather than JPY) in early-mid-2019.
If some creditors want to sell bitcoins, this will have a negative impact on the market only next year.
Recall, in March Kobayashi said that the sale of Bitcoins and Bitcoin Cash for a total of $ 406 million did not affect the cryptocurrency market decline.
Nevertheless, traders closely followed the wallets of Mt.Gox and perceive any movements on them as a potential signal to the next Bitcoin sell-offs.