Mt. Gox trustee clears major hurdle with ‘final and binding’ rehabilitation plan

Mt. Gox trustee clears major hurdle with ‘final and binding’ rehabilitation plan

The rehabilitation plan for the defunct digital currency exchange Mt. Gox is now final and binding, the exchange trustee has announced. The plan was approved by a majority of creditors and will bring the long process of compensating creditors of the exchange to a close.

Nobuaki Kobayashi, the rehabilitation trustee, filed the plan at the Tokyo District Court in February 2021. As CoinGeek reported, a large majority of the creditors in October approved it. Around the same time, the Tokyo court made a confirmation order of the plan. 

As Kobayashi revealed in a letter to former Mt. Gox users, on November 16, this rehabilitation plan is now final and binding.

“The Rehabilitation Trustee would like to express sincere gratitude to all involved parties for their understanding and support, which led to the Rehabilitation Plan becoming final and binding,” he added.

Kobayashi will begin to make repayments to the creditors who hold allowed claims in accordance with the plan. He pledged to make an announcement on the timing, procedures, and amount of these payments in the near future.

The creditors must register their bank account information on the exchange’s online filing system to receive the payments. 

Mt. Gox was once the world’s largest exchange before it lost 850,000 BTC in early 2014 and consequently shut down. At the time, the stash was valued at about $500 million. Around 141,000 BTC has been recovered since then and will be distributed to the creditors. While this is less than a fifth of the BTC that was lost, it’s worth 17 times more at $8.5 billion as the digital currency has spiked in value since 2014.

However, even as repayment seems to be edging closer, some claimants express skepticism over the process. According to one, the trustee has been informing the victims of any developments first before making them public. However, when the supposed payments started edging closer, the trustee has stopped communicating with the victims.

Follow CoinGeek’s Crypto Crime Cartel series, which delves into the stream of groups—a from BitMEX to BinanceBitcoin.comBlockstreamShapeShiftCoinbaseRipple 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.

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