Mt. Gox has made decisions over rehabilitation, creditors can appeal

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The infamous Japanese crypto exchange, Mt. Gox has announced that decisions on rehabilitation claims have been reached. The court-appointed Rehabilitation Trustee, Nobuaki Kobayashi revealed that not everyone who had filed a rehabilitation claim has been approved. In a notice published on the Mt. Gox website, the attorney notified those whose claims had been rejected that they have the right to appeal the decisions.

Kobayashi announced late last month that the period allowed for the filing of the claims had come to an end. It was then up to the approved creditors to either approve or deny the claims. Kobayashi then sent emails to all the claimants informing them of the status of their applications.

There were some creditors who never filed claims but the rehabilitation trustee ended up approving them anyway. This was because Japanese law dictates that the trustee must attend to all the claims he knows of, whether they have been filed or not. However, self-approved claimants lack the right to vote on the proceedings of the rehabilitation plan.

Kobayashi explained why some claims had been rejected:

“In general, if the balance in your MTGOX account did not cover the amount of your filed claim, we disapproved that amount of your filed claim that exceeded the balance in your MTGOX account. In addition, we disapproved whole claims where the balance in your MTGOX account was zero or where we could not verify that you are the user of MTGOX.”

This puts some investors in a dilemma and it means they could end up losing their money. This is because Kobayashi demands that the claimants must indicate the balance on their claims as it was on their Mt. Gox accounts. For those that are uncertain, it’s an uphill battle for them as their account information is no longer available on the Mt. Gox website.

Disapproved claimants have a second chance to demand for compensations. They can file an application for an assessment of their claims with the court, the notice indicated. The court will then determine the existence and right amount of their claims.

Mt. Gox left over 24,000 disgruntled creditors following its hack and consequent collapse. These creditors have been embroiled in court battles with the exchange, with the former CEO Mark Karpeles at the center of it all.