Creditors of Mt Gox are preparing a petition for repayment of their funds in Bitcoin

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The group of creditors of the bankrupt bitcoin exchange Mt. Gox has already started the preparation of the requirements for the redemption of lost Bitcoins in accordance with the June decision of the court.

Lawyers representing a group of creditors of Mt Gox, filed a petition in November to put the bankruptcy process exchanges to a new stage of civil rehabilitation, has published an updated proposal for the preparation of a rehabilitation plan.

The initial framework proposal was published by the lawyers on June 29, just a week after a Tokyo court approved the petition for the return of civilians creditors since late last year. In the last sentence, the lawyers noted that it is desirable that the compensation of the “BCH and BTC was sent directly to exchange, on which many lenders have account or easy access account,” adding:

“We are of the opinion that the majority of assets, including approximately 166 000 168 000 BTC and BCH and other derivative instruments that are currently held at Mt. Gox, must be paid to creditors during the first payment”.

The aggregate value of these assets could reach $1.3 billion, based on current prices on the stock market.

New proposals on the revision of the policy payments

In accordance with the revision policy payments, the first payments to creditors will start in may or June 2019, if approved payment plan. Currently, lawyers representing a group of creditors, seeking additional opportunities to Refine a formal rehabilitation plan and submit it to the court by February next year. In addition, the revised proposal indicated that cryptocurrencies except BTC and BCH owned by Mt. Gox, should be converted into cash to pay creditors, Fiat money, as their prices may fluctuate with the threat of a sharp decline.

Mt Gox, once the world’s largest Bitcoin exchange, declared bankruptcy in 2014 after it had been hacked and stolen more than 744 000 BTC. Subsequently, creditors had to go through many years of trial, to claim the repayment of their funds.

However, due to the sharp increase in the price of Bitcoins to $20 000 at the end of last year, a group of creditors filed a petition in the court in Tokyo to convert the bankruptcy case in the process of civil rehabilitation. At that time Trustee of the Mt. Gox kept Bitcoin 195 202, and then translated more than 30 000 of them in cash in March 2018.

The court’s adoption of the petition for civil rehabilitation means that Mt. Gox no longer will need to eliminate any assets or BCH BTC and transfer them to Fiat.

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Label: Mt. Gox

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