In a move that could finally bring an end to one of the longest-running sagas in the digital currency industry, Mt. Gox is set to pay out over $9 billion to its creditors. The trustee for the defunct exchange revealed that the creditors had approved its plan to distribute the BTC it recovered from the hack years ago.
Launched by blockchain developer Jed McCaleb in 2010 and later acquired by Mark Karpeles, Mt. Gox was at one time the biggest BTC exchange in the world. However, in early 2014, it was hacked and about 850,000 BTC, worth $500 million at the time, was stolen. Since then, investors who lost their fortunes have been engaging in endless legal battles as they attempt to recover their funds.
This long struggle might be coming to an end, at least in part.
In an October 20 release, the rehabilitation trustee of the Japanese exchange revealed that a large majority of creditors had approved a plan that was first proposed about a year ago. 99% of the creditors voted in favor of the plan, the trustee, Nobuaki Kobayashi revealed.
The plan has been sent to the Tokyo District Court.
“Depending on the situation, the confirmation order is expected to become final and binding in approximately one month from today,” the trustee stated.
In the years following the hack, some of the BTC was recovered, and it’s this stash that the creditors are expected to share. According to documents on its website, Mt. Gox is in possession of 141,686 BTC, worth $8.9 billion at press time. It also holds 142,846 BCH, worth $89.7 million as well as 69.7 billion won ($610 million).
While no official date has been set for the payout, BlockTower Capital’s Avi Felman believes that it will be an important one for the industry. “It’s a date every market participant needs to keep their eye on,” he told Bloomberg.
Follow CoinGeek’s Crypto Crime Cartel series, which delves into the stream of groups—a from BitMEX to Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple and
Ethereum—who have co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) players in the market.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.