MtGox’s trustee establishes Trust with SMBC to protect interests of bankruptcy creditors

Maria Nikolova

The trust assets exceed JPY 15.8 billion as of the date of its establishment.

Nobuaki Kobayashi, the civil rehabilitation and bankruptcy trustee of ill-fated Bitcoin exchange MtGox, has earlier today announced a set of measures aiming to secure the interests of bankruptcy creditors.

The bankruptcy trustee said he had sold a certain amount of bitcoin (BTC) and bitcoin cash (BCH) that belonged to the bankruptcy estate, during the period from the 10th creditors’ meeting in the Bankruptcy Proceedings (it took place on March 7, 2018) to the commencement of Civil Rehabilitation Proceedings, and secured a certain amount of money for the bankruptcy estate.

As a result of the Sale, the balance in the bankrupt trustee’s account reached approximately JPY 70,059 million.

In addition, the bankruptcy trustee created a trust by entering into an agreement with Sumitomo Mitsui Banking Corporation (SMBC) as a measure to secure interests expected to have already been obtained by the monetary creditors who filed proofs of bankruptcy claims in the Bankruptcy Proceedings. SMBC will act as a trustee of the Trust.

The Trust assets amount to JPY 15,894,530,915 as of the date of its establishment.

The agreement was entered into after the bankruptcy trustee determined that it is necessary and appropriate to establish a trust for the principal and delay damages of the monetary claims filed in the Bankruptcy Proceedings, the total amount of which is about JPY 17,864,000,000, with the Trust Assets being a suitable amount of money for the interests creditors were expected to have obtained in the Bankruptcy Proceedings. Also, such an agreement provides, among other things, guarantees for obligations regarding the monetary claims for which proofs of bankruptcy claims have been filed, which are only paid out of the Trust Assets.

There is about a month left for submitting proofs of rehabilitation claim to MtGox’s trustee, and the tensions among clients of the ill-fated Bitcoin exchange are on the rise. Some of them – those who have chosen the offline method to file their rehabilitation claims rather than the online method, are now worried that they may be put at disadvantage over the other claimants. Last week, the Q&A section on MtGox’s website was updated, with the trustee providing more explanations about procedural specificities, and stressing that the Office of the Rehabilitation Trustee in the Civil Rehabilitation Proceedings is receiving a large volume of proofs of rehabilitation claim forms, and it will take some time to process the paperwork.

Read this next

Inside View

Private Equity Renaissance

Recent years have seen a resurgence in the concept of trading physical equities, with a slew of new arrivals joining the market for what is arguably one of the oldest forms of investing. But what has been the driving force behind this change in momentum?

Digital Assets

Dubai introduces new crypto regulations with fines of up to $135,000

Against the backdrop of a crashing market and burned investors, Dubai has sealed a landmark rulebook that governs how the Emirate will regulate cryptocurrency activities.

Institutional FX

FX volume drops 16pct at Russia’s largest exchange in January

The Moscow Exchange, Russia’s largest exchange group, released its monthly batch of trading volumes and metrics for January 2023 – the latest readings showed a pullback across the board for multiple segments, namely in the FX, given lower volatility and a reduced trading schedule.

Institutional FX

Standard Chartered sets up wholly-owned brokerage arm in China

UK-headquartered bank Standard Chartered said its Hong Kong arm has been granted an in-principle approval for a brokerage license from the China Securities Regulatory Commission (CSRC).

Digital Assets

Revolut offers staking for Ether, Cardano, Polkadot, and Tezo

British fintech and banking firm Revolut has introduced crypto staking — a practice of earning rewards for serving as a transaction validator in the Ethereum blockchain – to its UK and European Economic Area (EEA) customers.

Inside View

Saxo releases Q1 2023 Quarterly Outlook: “The Models Are Broken”

“2023 is likely to prove a rough ride for currencies if the USD bear market fails to continue in a straight line, but EUR and JPY may outperform.”

Institutional FX

FXPA welcomes Mesirow as a member of the institutional FX industry body

“Our deep commitment to advancing best practices align well with FXPA’s goals of championing a robust FX market for all industry participants.”

Industry News

ICE delivers Russian-free barrels of ICE Gasoil and expands ESG data in APAC

ICE changed the methodology for Low Sulphur Gasoil futures from previously delivering diesel from any origin, to deliver diesel that does not include any originating from Russia. ICE Gasoil is the global benchmark for refined oil products.

Digital Assets taps Coinfirm for AML/CFT compliance amid licenses in the US, Europe, Hong Kong

“At, we continuously strive to mitigate AML/CFT and counterparty risks by integrating best-in-class security measures and safeguards into every part of our operations.”