Mt. Gox Creditors to See Reimbursement Decision Within Days
The Mt. Gox trustee has completed the process of reviewing claims, finally to reveal a scheme to reimburse those who held Bitcoin (BTC) on the Tokyo-based market.
Those affected by the Mt. Gox crash may see a decision on a reimbursement scheme “within days”, revealed the Mt. Gox appointed trustee Nobuaki Kobayashi in a recent statement.
The Mt. Gox crash in early 2014 took away as much as 744,000 Bitcoin (BTC), of which some may still be held in secure wallets. However, some of the holdings were sold by Mr. Kobayashi, as late as the summer of 2018, before a new drive to seek redress for the creditors.
Mt. Gox crashed during the first more significant peak for BTC prices, when the asset broke above $1,000 for the first time, but then went on to lose most of its value. In the intervening years, BTC went up to a record bull run with prices above $19,600, later sliding to the current $4,000 level.
The Mt. Gox case was slow to unravel, finally deciding the fate of former CEO Mark Karpeles. He was found guilty of financial tampering, earning a two and a half years’ suspended sentence, but was found not guilty of embezzlement.
Mt. Gox creditors, as those traders affected have been called, had a procedure to register their claims. The exchange was used by early Bitcoin adopters, who also kept their assets on the exchange’s wallet.
The expected settlement would be available either in cryptocurrency or in cash. Currently, the Mt. Gox balances show about 140,000 BTC and the same amount of Bitcoin Cash (BCH), with smaller forks still unclaimed. Based on a recent report, the trustee’s sales mean the exchange has as much as $627 million to redistribute, and the total of assets to reach creditors is above $1.2 billion.
Based on previous reports, the last of the sales from the exchange may have happened as late as December 2018, during coinciding with the lowest level of the bear market.
The expectations are that the reimbursed BTC would either be sold or that the windfall for some of the creditors may flow back into digital assets.
So far, there is no new information on the plan of Brock Pierce to offer his own reimbursement plan, and to relaunch the exchange, as he is the owner of the brand.