Victims of the historic Mt. Gox cryptocurrency hack are closer than ever to getting their compensation after the exchange’s trustee approved creditors’ claims.
In a statement dated March 19, the rehabilitation trustee in its Civil Rehabilitation proceedings Nobuaki Kobayashi (Attorney-at-law) announced that the creditor claims running into billions of dollars have been approved.
“The Rehabilitation Trustee has approved Exchange-Related Rehabilitation Claims that have been acknowledged based on balances in the MTGOX Bitcoin exchange database, including those that Users have not duly filed.”
As Smartereum reported, the defunct exchange began a civil rehabilitation process in accordance with Japanese laws to compensate victims affected by the hack. Since the incident, the exchange has been hit with several court cases. However, with the introduction of the process, its bankruptcy court case was suspended to allow the exchange to repay customers before folding in. Nobuaki Kobayashi assured at the time that all debts will be paid before the bankruptcy proceedings resumed.
Following the process, creditors began making their claims later in 2018 in view of repayment. Those claims and those that were not duly filled have now been approved or not. According to the document, the decisions made on the claims will be released in the next few days and creditors will be notified of the results via various channels depending on the medium through which the claims were made.
In a separate document, the trustee released details of the progress and current status on assets of the exchange. According to the report, the cash balance the exchange holds as at the moment stood at 69,553,086,521 Japanese yen (approx. $629,594,540). This is notably short of 122,000,000 yen (approx. 1,103,313) from the time of the 1st creditors’ meeting under the Civil Rehabilitation proceedings that took place last September.
However, the document explained:
“…among the account balance that has been secured, the Rehabilitation Trustee has established the trust as the measure to secure the interests of bankruptcy creditors and entrusted the amount of JPY 15,894,588,396 [approx. $143,881,490] (including an amount expected to be appropriated for various expenses of the trust) in the trust.”
Unlike in bankruptcy proceedings, during a civil rehabilitation non-monetary claims are not converted into monetary claims at the time of commencement. While the exchange reported crypto holdings of 141,686.35 BTC and 142,846.35 BCH it approved claims of 802,521 BTC, and 792,296 BCH respectively. The fiat claims approved was worth $38,165,664 in U.S. dollars and other currencies.
As Smartereum reported, the former CEO of Mt. Gox Mark Karpeles received a suspended prison sentence after being convicted of wrongfully making electronic records connected to the exchange’s books. He was, however, acquitted of embezzlement charges and breach of trust by the Tokyo District Court this month.
According to a timeline proffered by the Mt. Gox trustee, a deadline for finalizing the rehabilitation plan was set for April 26. There are arguments within sections of the cryptocurrency community that the influx of coins into the market as a result of the Mt. Gox settlement would affect the price of bitcoin.
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