In a document posted on the Mt Gox website, it would appear the Tokyo District Court has approved a petition to move the company from a state of ‘criminal bankruptcy’ to ‘civil rehabilitation’. This would mean that investors who lost funds in the infamous $473 million hack may that left Mt Gox insolvent, may finally be reimbursed.
The move to civil rehabilitation means that creditors can be more easily compensated. Had they remained in criminal bankruptcy, creditors may have been paid in fiat currency at the 2014 exchange rate of $480/BTC. With the approval of the petition, they may now be refunded directly in cryptocurrency, although the exact nature will depend on legal proceedings.
Creditors must file new proof claims by October 22nd this year in order to be considered eligible for refunds, even if they have previously filed claims before. Proceedings will likely not commence until February next year.
Trustees of the Mt Gox estate have covered liabilities of the exchange by selling off thousands of Bitcoin and Bitcoin Cash which analysts believe have contributed to recent price devaluations. However, they still hold wallets with BTC worth approximately $878 million which may be used in the compensations plans of the civil rehabilitation proceedings.
The document goes on to note that the representatives for Mt Gox may no longer administer or dispose of Mt Gox’s assets, meaning any remaining Bitcoin in their possession may not be used or sold off.
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