Mt. Gox Opens Claims for Creditors

News and Analysis

According to a press release posted on the infamous Bitcoin exchange Mt. Gox website, an online claim filing system has been opened allowing its creditors to begin registering claims on the funds that they lost when the exchange became insolvent in 2014.

The notice attributed to Mt. Gox trustee Nobuaki Kobayashi says:

“As with the bankruptcy proceedings, the Rehabilitation Trustee has built a system on which users of MTGOX’s [sic] Bitcoin exchange can file proofs of rehabilitation claim with respect to the claims for return of cryptocurrency and money against MTGOX. […] Users around the world can, without using time or money, easily participate in the Civil Rehabilitation Proceedings through filing proofs of Exchange-Related Rehabilitation Claim in accordance with the Civil Rehabilitation Act of Japan and other laws and ordinances”.

The online tool for submitting claims is also available, and if for any reason this online method is not suitable, claims can be made via post.

All claims must be filed by October 22, and will go directly to Japan’s Civil Rehabilitation Trustee. By February next year, claims will have been judged and the redistribution of what’s left of Mt. Gox’s assets will have begun.

It should be noted that this process is strictly for individuals – claims for corporate creditors will have to be filed at a later date.

Mt. Gox was once the dominant bitcoin trading platform. It opened in 2010 and in just four years grew to process more than 70 percent of the world’s Bitcoin trades. In February 2014, Mt. Gox suddenly went offline, claiming that over 850,000 Bitcoin and $28 million in fiat had vanished.

The Japan-based exchange blamed hackers and a security flaw for the loss. A few weeks later, it just happened to find 200,000 BTC, just laying around. It then proceeded to sell huge amounts of cryptocurrency when markets were at their peak – many attributing the series of sell-offs to massive price drops.

By the time the Tokyo District Court had decided to halt bankruptcy proceedings and start civil rehabilitation, around 170,000 Bitcoin and Bitcoin Cash were all that was left to distribute amongst its angry userbase. Still, that’s over a billion dollars.

Mt. Gox CEO, Mark Karpelès, expressed regret over the lengthy process in an AMA session earlier this year. His trial commenced last month – where he stands accused of embezzlement and data manipulation. He pleaded not guilty.

According to the Mt. Gox Cold Wallet Monitor, the company’s estate is holding 137,891 BTC, worth more than $920 million at the time of writing, as well as an equivalent amount of bitcoin cash, worth over $73 million.

Follow ForkLog on Twitter and Facebook!

Found a typo? Highlight text and press CTRL+ENTER

Subscribe to our Newsletter


Related posts

Tags: ,