Mt. Gox Civil Rehab Proceedings Boost Creditors’ Hope

The Tokyo District Court has laid out a plan, complete with milestone dates, to bring some relief to Mt. Gox creditors.

Just when they likely thought there was no chance they would recoup their losses from the Mt. Gox debacle, a happening has occurred that gives them hope.

News circulated Friday that the Mt. Gox case is being moved to civil rehabilitation proceedings, and a hope is that any resolution will entail creditors being paid back their losses in cryptos.

Today, the Tokyo District Court approved the start of civil rehabilitation proceedings for Mt. Gox, which means the bankruptcy process that’s been underway since 2014 will be put on hold, according to a document posted on mtgox.com.

This may mean creditors will finally recoup their Bitcoin losses.

In making the announcement, the court stated:

Crooks ran off with more than $473 million in cryptos in 2014 after they hacked the Mt. Gox exchange. The heist had been the largest in the space’s history until the hack of Coincheck at the beginning of the year.

Mt. Gox’s hack stunned the space and led to many potential investors avoiding it all together. Worthless, the exchange eventually filed for criminal bankruptcy in Japan.

Schedule for Civil Rehabilitation Proceedings

• Sept. 26, 2018: Meeting for reporting the status of property and submission deadline for a report under Article 125 of the Civil Rehabilitation Act
• Oct. 22, 2018: Deadline for Filing proof of rehabilitation claims
• Oct. 27, 2018: Submission deadline for inventory of assets and balance sheets
• Jan. 24, 2019: Submission deadline for statement of approval or disapproval
• From January 31, 2019, to February 7, 2019: Period to examine Proofs of rehabilitation claims