Mt. Gox creditors approve a $10 billion compensation plan

abdelaziz Fathi

Mt. Gox’s trustee today confirmed that creditors of the defunct crypto exchange have overwhelmingly approved his compensation plan, a few weeks after a Tokyo court said there were no grounds for disapproving it.

In a statement released today, court-appointed Nobuaki Kobayashi said 99 percent of votes cast by the Mt. Gox’s creditors were in favour of the draft rehabilitation plan. This figure represents 83 percent of the total in attendance, well above the required two-thirds threshold.

“Depending on the situation, the confirmation order is expected to become final and binding in approximately one month from today. The Rehabilitation Trustee will then make repayments to rehabilitation creditors holding allowed rehabilitation claims in accordance with the Rehabilitation Plan. An announcement will be made to rehabilitation creditors on the details of the specific timing, procedures, and amount of such repayments,” the statement further reads.

Kobayashi filed with the Tokyo District Court a revised draft rehabilitation plan in February 2021. This included revisions to schedules for paying back funds for both allowed and disputed claims.

The court and an examiner have reviewed the amended plan, and creditors were then called to vote on it after it was approved.

The trustee is reportedly holding 150,000 bitcoin, worth roughly $10 billion at current market prices. More than 20,000 victims are believed to have filed claims for a refund.

Civil rehabilitation is not used to resuscitate Mt. Gox business but rather as a more flexible form of bankruptcy. It also allows the trustee to create his own plan instead of following a rigid set of steps under the bankruptcy proceedings. And, most importantly, the bitcoin claims will be able to be revalued – hopefully in bitcoin this time.

Mt. Gox went offline in 2014 in the single biggest setback in the history of Bitcoin after 850,000 bitcoins were stolen in a hacking attack. Under suspicious circumstances, the Japanese exchange claimed it had lost track of about 750,000 bitcoins belonging to customers and another 100,000 of its own, but later said it had found 200,000 bitcoins.

Those assets were supposed to be distributed to shareholders as ‎part of the liquidation. This is because the value of creditors’ claims is calculated in ‎the exchange rate between Bitcoin and the Japanese yen on the bankruptcy date in April 2014, instead of current rates.‎

However, the rehabilitation ruling is not in the financial interest of the shareholders. Mt.Gox has two ‎shareholders, Tibanne and Jed McCaleb. The Tokyo-based exchange is 88 percent owned by Tibanne, ‎of which Karpelès is the sole owner. The remaining 12 percent are held by Mt. Gox’s original ‎creator Jed McCaleb, a San Francisco-based programmer who currently works with ‎Stellar.‎

  • Read this next

    Fintech

    Volt secures EMI license, expands payment solutions in UK

    Volt has successfully obtained an Electronic Money Institution (EMI) license from the UK’s Financial Conduct Authority (FCA).

    Retail FX

    ASIC bankrupts finfluencer Tyson Scholz over stock tips

    The Australian Securities and Investments Commission (ASIC) has effectively bankrupted Tyson Robert Scholz, the figure behind “Black Wolf Pit.” The action marks a significant crackdown on so-called ‘finfluencers’ and individuals providing unlicensed financial services.

    Digital Assets

    Green Bitcoin Presale Raises $1M as Bitcoin Approaches its ATH

    The eco-friendly crypto project Green Bitcoin has seen its limited-time presale phase cross $1 million in funding. With an innovative gamified staking model and energy-efficient foundation, Green Bitcoin offers token holders a way to stake their tokens and generate yield.

    Web3

    Introducing QuickNode Streams: Elevating Blockchain Data Management

    Discover QuickNode’s Latest Innovation: Streamlining Blockchain Data Streaming for Enhanced Efficiency and Accessibility. Explore the Future of Blockchain Technology with Streams.

    Industry News

    John Oliver rips into MetaTrader over role in ‘Pig Butchering’ scams

    “If your friend told you to download an app, and you saw it in the app store with good reviews, you might assume everything on it was legitimate. In before, you saw MetaTrader’s logo which looks like three men in suits jerking each other off under a table – an appropriate metaphor for cryptocurrency if I have ever seen one,” Oliver quipped.

    Digital Assets

    Coinbase supports Nethermind and Erigon to ease Geth dependency

    Coinbase plans to support additional execution clients as America’s largest crypto platform aims to improve the Ethereum blockchain’s resilience and mitigate the risks associated with the network’s heavy reliance on a single client.

    Opinion

    How AI Transforms Trading: Current Trends and Perspectives

    In 2023, we observed a boom of news about Artificial Intelligence (AI) in every field, whether finance, tech or medicine. In 2024 and later, AI will take an even more significant place.

    Industry News, Uncategorized

    FCA wants to tackle lack of competition in wholesale data market

    “Complex licensing practices by MDVs and trade data providers who deliver their data through MDVs increase costs for data users. Many Market Data Vendor (MDV) users have to hold licences both from the data generator (such as a trading venue) and from the MDV through which they access data. We have seen an increasing proliferation of licences for similar data types and different use cases. Complexity also drives additional costs for data users, such as operating a compliance team.”

    Digital Assets

    SEC objects to Terraform’s $166 million legal retainer

    The U.S. Securities and Exchange Commission (SEC) has lodged objections against Terraform Labs for a $166 million retainer payment to its legal representatives ahead of its trial.

    <