Mt. Gox Creditors’ Hopes Renewed; Court’s Action Approves Civil Rehab Proceedings
Cryptovest
Published Jun 22, 2018 03:00PM ET
Updated Jun 22, 2018 03:21PM ET
Mt. Gox Creditors’ Hopes Renewed; Court’s Action Approves Civil Rehab Proceedings
Just when they likely thought there was no chance they would recoup their losses from the Mt. Gox debacle, a happening has occurred that gives them hope.
News circulated Friday that the Mt. Gox case is being moved to civil rehabilitation proceedings, and a hope is that any resolution will entail creditors being paid back their losses in cryptos.
Let’s discuss.
Tokyo court takes action
Today, the Tokyo District Court approved the start of civil rehabilitation proceedings for Mt. Gox, which means the bankruptcy process that’s been underway since 2014 will be put on hold, according to a document posted on mtgox.com.
This may mean creditors will finally recoup their Bitcoin losses.
In making the announcement, the court stated:
“Today, on June 22, 2018, the District Court ordered commencement of civil rehabilitation proceedings regarding Mt. Gox. Accordingly, enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors of Mt. Gox in civil rehabilitation proceedings. This is the creditors’ victory. “
From no hope to some
Crooks ran off with more than $473 million in cryptos in 2014 after they hacked the Mt. Gox exchange. The heist had been the largest in the space’s history until the hack of Coincheck at the beginning of the year.
Mt. Gox’s hack stunned the space and led to many potential investors avoiding it all together. Worthless, the exchange eventually filed for criminal bankruptcy in Japan.
Next steps
The schedule going forward for the civil rehabilitation proceedings is as follows:
• Sept. 26, 2018: Meeting for reporting the status of property and submission deadline for a report under Article 125 of the Civil Rehabilitation Act
• Oct. 22, 2018: Deadline for Filing proof of rehabilitation claims
• Oct. 27, 2018: Submission deadline for inventory of assets and balance sheets
• Jan. 24, 2019: Submission deadline for statement of approval or disapproval
• From January 31, 2019, to February 7, 2019: Period to examine Proofs of rehabilitation claims:
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