Mt Gox Creditors Prepares Revised Claim Plan For Bitcoin Repayments
In 2014, all was well in the world of Mt Gox exchange as it handled an estimated 70% of the total Bitcoin supply, but soon a security breach that led to a loss/theft of approx 850,000 BTC (worth $450 million at the time). Mt Gox filed for bankruptcy leaving creditors stupefied. Subsequently, they battled to retrieve their trapped funds, which that has been a years-long process. Now a new ray of hope in the form of a revised repayment plan has been outlined for those who still owed money from the disaster.
After receiving various comments from a large number of creditors on the previous version of the basic policy, a ‘Revised Basic Policy for Preparing a Rehabilitation Plan as of August 1, 2018,’ has been posted on the mtgox-creditors.com website on Wednesday. The policy aims to screen the process of repayment so that the creditors aren’t cheated out of their payments. It will also oversee that the payments are made in a timely fashion and the desired currency and lay down the law regarding who will or will not get pain in the proceedings.
Basic Policy for the Rehabilitation Plan
1: The rehabilitation plan should be simple and the implementation should have a high degree of certainty.
Undoubtedly, the creditors want as much as transparency as possible. A simple plan will not only ensure the same but can be processed with fewer hassles resulting in faster first payment.
2: No distribution will be made to shareholders.
Interestingly, this suggestion might raise more than a few eyebrows. Since Mt.Gox can’t afford to pay back the full amount to everyone concern the creditors demand the priority for themselves.
3: Claims for return of bitcoins (BTC) will be repaid in BCH.
This is just to simplify the process while avoiding bank transfer fees and to allow repayment in the same currency that the creditor lost. In regards to the altcoins (cryptocurrency except for BTC and BCH), the number of exchanges is limited. The trustee is directed to liquidate the altcoins for transfer but with caution, as the sudden sale of altcoins would cause a sudden fall in the price and security problems.
4: The full payment to the monetary creditors will be made.
The monetary creditors will receive full repayment to the degree which has been approved in the bankruptcy proceedings.
5: First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan.
To offer some relief to the 4-year long wait by the creditors, the repayment will be done as soon as possible.
6: If there are any residual assets, or new assets found, additional payment will be made.
In the event that more Bitcoins are recovered by the trustee after the payments have already been finalized, the same will be paid to creditors as additional payment.
7: No sponsors will be selected in principle except where it is apparent that such a selection would be advantageous to creditors.
Although a common practice it is not a legal not necessarily a requirement under the rehabilitation law of Japan to appoint a sponsor. This process will only be an obstacle early payment to the creditors and thus should be avoided.
8: The introduction of systems which allow creditors to obtain their trading records.
In order for a fair and proper approval or disapproval of civil rehabilitation plan, the accessibility to the creditor’s trading record is a must.
The rehabilitation trustee Nobuaki Kobayashi announced in July that a new system for creditors to file proof for claiming repayments is due for release in August. This will finally ensure that the creditors begin to see some of their money returned to them at last
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