A recent filing with the Tokyo court shows that the victims of the infamous bankruptcy of Mt. Gox will soon be able to finally put the big fiasco behind them.
Creditors can get 90% back
The creditors of Mt. Gox are expected to recover a total of more than $9 billion in Bitcoin (BTC). This is in a rehabilitation plan document that has been filed with the Tokyo District Court for the now defunct crypto exchange.
Creditors here refers to the various victims who lost money when the crypto exchange was hacked in 2014. The trustee said in the rehabilitation plan document:
“The Rehabilitation Trustee would like to sincerely thank all parties involved for their understanding and support. Depending on the situation, the order confirmation is expected to become final and binding in approximately one month from today.”
Once approved, creditors must register their bank accounts in Mt. Gox to receive payments. “Rehabilitation creditors who are unable to log into the system may face difficulties in receiving refunds,” the trustee said.
“It is a date that every market participant should keep an eye on”. This is what BlockTower Capital wallet manager Avi Felman reportedly said. Felman added that there will likely be “significant volatility around the event, and if Bitcoin overheats, it could mark a local top as holders can finally make a profit on their positions.”
Creditors will be able to receive about 90% of the assets they owe. The total amount held by the trustee will be allegedly estimated at over $9 billion. This amount takes into account the last Bitcoin ATH recorded earlier this week.
What’s up with Mt. Gox happened?
mt. Gox was a crypto exchange that has become infamous in crypto history. The exchange went offline in February 2014 after withdrawal problems started already on February 7, 2014. It soon became clear that the recording problems were a harbinger of something much worse.
The now-defunct cryptocurrency exchange also handled most of the world’s Bitcoin transactions at the time, around 70% of them. When Mt. Gox collapsed, it caused a crash in terms of Bitcoin price. The price of the cryptocurrency dropped from around $800 to $400, far from today’s prices.
Since the exchange’s collapse, it has been an uphill battle for Mt. gox. They have faced rehabilitation plan delays and high compensation in a protracted battle to recover lost money.