A petition has been filed in Tokyo, the creditors of Mt Gox, to begin a civil rehabilitation process to collect payments in bitcoin.
Mt Gox was a bitcoin exchange based in Shibuya, Tokyo, Japan. Launched in July 2010, by 2013 and in 2014 it was handling over 70% of all bitcoin transactions worldwide, as the largest bitcoin intermediary and the world’s leading bitcoin exchange.
In February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. In April 2014, the company began liquidation proceedings.
Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time. Although 200,000 bitcoins have since been “found”. The reason(s) for the disappearance—theft, fraud, mismanagement, or a combination of these—were initially unclear. New evidence presented in April 2015 by Tokyo security company WizSec led them to conclude that “most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot wallet over time, beginning in late 2011.”
Mt Gox Creditors Filed Petition
According to the report revealed by, Nikkie he creditors of the Mt Gox have filed a petition to the Tokyo District Court to stop bankruptcy proceedings and switch over to a civil rehabilitation process instead.
Mt Gox was once the biggest bitcoin exchange by trading volume in the world until it went down in 2014. Presently the filings against them dictate the payments owed to creditors at the market value of the company’s assets at the time of bankruptcy. The market value of the bitcoin during the disintegration of Mt Gox was just under $450 compared to present day prices of nearly $17,000.
One of the Mt Gox creditors told CCN last month creditors’ claims are limited to a maximum value of $480. when it was disclosed that Mt Gox’s former chief Mark Karpeles is expected to take the majority of the profit from the bankruptcy’s proceedings in the billions today. Mt Gox is expected to have a surplus of over 200 billion yen ($1.764 billion) after payments to its creditors in fiat yen under current proceeding. An investigation into the bankruptcy recovered 200,000 bitcoins which are about $3.4 billion in today’s price.
Consequently, the creditors are requesting the court to stop Mt Gox’s bankruptcy proceedings and focus on a civil rehabilitation process which will provide them to receive recovery payments in bitcoin which is more valuable in the present days.
The creditors’ petition will take into account by the Tokyo District Court and is expected to make a decision in early 2018.
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