Mt. Gox Creditors Inch Closer To Being Paid

Mt. Gox Creditors Inch Closer To Being Paid

Mt. Gox, after several years of leaving creditors in suspense, has finally made a little progress toward paying its creditors.  After the cryptocurrency exchange failed in 2014 – for reasons that have still not concretely been identified – a battle has been brewing by creditors to try and recuperate some of the more than $450 million that suddenly disappeared.  This past Tuesday, the exchange’s trustee announced (in pdf) that he has finished processing creditors’ claims and that he had also informed the Tokyo District Court of his progress.  

The trustee, Nobuaki Kobayashi, was appointed by the courts to oversee the Mt. Gox debacle.  He added in his announcement that he will soon be issuing the results of his review and that creditors can expect to be notified according to how the claim was made.  If someone filed a claim on the online filing system, for example, they can check the results on the site. Any claims filed through other methods will have their responses delivered through email.  

Kobayashi explained in his announcement, “In principle, in accordance with the Civil Rehabilitation Act of Japan, 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. Please note that the results of approval or disapproval of the Exchange-Related Rehabilitation Claims, including those that the Rehabilitation Trustee acknowledged based on the database but Users have not duly filed, will become final on the expiration of the period to examine proofs of rehabilitation claims.”

Kobayashi further detailed the balance of the exchange as of March 20, saying that it currently holds about $629.59 million in cash.  He added, “However, 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 [$143,881,490] (including an amount expected to be appropriated for various expenses of the trust) in the trust.”

So far, the trustee has approved claims worth a total of around $166 million.

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