Mt. Gox Doors Open For Victim Payouts

Jun 24, 2018 at 02:38 Update Date :Jun 24, 2018 at 02:38 UTC

The Mt. Gox hack, at the biggest exchange at that time, was one of the game-changing hacks in Bitcoin history, when 850,000 Bitcoins were stolen out of it, and the exchange had to claim bankruptcy.

There is good news for the users of the exchange as a Japanese court has recently ruled that Mt. Gox’s bankruptcy is over, thus making the case for victim payouts.

Back then, the coins valued $473 millions against the astounding $5.2 billion today. However, around 200,000 Bitcoins were recovered before the court proceedings for bankruptcy began, but they were frozen.

This was a major setback for the customers. However, there seems to be a ray of light at the end of the tunnel. But only time will tell if it is the end of the tunnel or another train.

The Tokyo District Court brought an end to the bankruptcy case and initiated a process called civil rehabilitation. This basically means that the debtors will be paid with the assets of the company, i.e, Bitcoin and Bitcoin cash.

Today, there are nearly 170,000 coins in the market with a value of a whopping $1.2 billion.

This civil rehabilitation will ensure that those who are in a pursuit of recovering their stolen Bitcoins will now get the current market value. The bankruptcy plan was to sell the coins at the rate when they were stolen, which was $473, and reimburse the stakeholders with the same, which meant that Mt. Gox would have gained immensely while leaving their customers hanging.

The former CEO of Mt. Gox, Mark Karpelès, who is also on a trail in Tokyo for embezzlement, said that he was very content with the court’s decision. He was quoted saying:

“I hope entering civil rehabilitation will be for the best of everyone. As I said previously I am not expecting any kind of profit from this and only hope everyone will be repaid as much as possible as soon as possible. Creditors worked hard for the purpose of seeing civil rehabilitation happen and I will continue to help as much as I can.”

Other beneficiaries include the ones who bought claims by the ex-customers of Mt. Gox who had rightfully assumed that they would never even see a portion of their money again. However, these payments will not be made immediately. The court has given the trustee the time till February 14th next to come up with a system to make the payouts in such a manner where the creditors will need to file their claims. However, it is safe to assume that the debtors will not receive their money till the end of the next year.

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