Mt. Gox Files to reimburse creditors

Mt. Gox Files to reimburse creditors

It has been a brutal five years at Mt. Gox. The cryptocurrency exchange had been looming under a dark cloud for quite some time now, as Japan’s Financial Services Authority (FSA) cited the scandal involving the company to restrict the ability of cryptocurrency exchanges to begin operations. Now it looks like the five-year-old scandal has finally resulted in compensation for those who were harmed by the fraud.

It has been an uphill climb for those who have appeared to have been defrauded since it was reported in February 2014 that 850,000 Bitcoins secured in Mt. Gox accounts had suddenly vanished. Those who had entrusted the exchange’s services with their accounts and transactions suddenly found themselves deprived of major assets, as the total value of those coins was placed at about $450 million.

Company officials tried to claim that they have been hacked for years, but that has been no consolation to consumers who were out large sums of the digital currency. They were not satisfied when former CEO Mark Karpeles was the subject of an investigation and eventually sentenced to prison. The goal was to get some kind of compensation and, after five years, that looks to have finally been achieved.

The Internet has come alive with stories of a number of creditors receiving compensation from the scandal. While no official word has been provided by anyone involved in the case, there have been many who have stated that their civil rehabilitation case has finally reaped some form of reimbursement, although an exact amount has not been provided by anyone. According to the reports, only those who did not file the rehabilitation claim paperwork have been receiving compensation.

According to one report, Nobuaki Kobayashi, the attorney handling the case, has alerted former clients and users of the Mt. Gox exchange that reimbursement would be coming in the form of compensation for the lost crypto that they suffered as part of the scandal. This will be paid out to those who have not filed the rehabilitation claim paperwork after losing their money.

What that means is that there are still pending legal matters related to those who did file the paperwork. When they will receive a larger compensation package is not known, and the exact amount that has been paid out to those who are part of this rehabilitation settlement has not been disclosed either. In fact, no one is officially involved in the case has responded to inquiries. This information has only become available through reports by claimants.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.