Monday, 6 August 2018

Defunct Mt. Gox Exchange Prepares To Claim Bitcoin Repayments https://ift.tt/2Obzdyf

A group of creditors of the non-operational crypto exchange Mt. Gox, has started preparing to claim for Bitcoin repayments after a legal decision issued in June. The lawyers who are representing some Mt. Gox creditors published an updated proposal on Aug 4 pertaining to the process to move the exchange into civil rehabilitation.

The group of creditors in their updated proposal said that they made the revisions based on the comments on the former version of the policy. The lawyers released an initial basic policy for the rehabilitation on June 29. The policy states that it would be apt to repay creditors who deposited Bitcoin (BTC) and Bitcoin Cash (BCH) with Mt. Gox in the same cryptos. The lawyers were of the opinion that most of the assets and other derivatives presently held by Mt. Gox should be paid off to creditors at the time of the first payment.

If this rehabilitation plan gets approved, according to the revised policy, the first payments to creditors can be expected to commence in May or June 2019. Considering the fact that the prices of cryptocurrencies are volatile and may fluctuate significantly causing security risks, the revised proposal mentions that cryptocurrencies other than BCH and BTC held by Mt. Gox needs to be liquidated into cash and then disbursed to creditors.

The exchange was once one of the world’s largest exchange platforms for Bitcoin till it filed for bankruptcy in 2014 after losing 850,000 bitcoins to hackers. The lost bitcoins were worth more than $450 million at that time, as stated in the Coingeek report. After the theft, the crypto exchange was left insolvent thereby leading it to file for criminal bankruptcy.

The creditors of Mt. Gox would be paid in fiat currency at the 2014 exchange rate (estimated at $480 per coin), under criminal bankruptcy. The exchange won’t have to liquidate any BTC or BCH assets now, as the court has approved its petition for civil rehabilitation.

The post Defunct Mt. Gox Exchange Prepares To Claim Bitcoin Repayments appeared first on OWLT Market.



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