After years of waiting, victims of the infamous Mt. Gox cryptocurrency exchange hack are finally set to receive restitution for their losses. The Tokyo District Court recently approved a rehabilitation plan that will see the distribution of approximately $1.2 billion worth of Bitcoin and Bitcoin Cash to the exchange’s creditors.
Mt. Gox was once the world’s largest Bitcoin exchange, handling over 70% of all Bitcoin transactions at its peak. However, in 2014, the exchange suffered a massive hack that saw over 850,000 Bitcoins, worth around $450 million at the time, stolen from its wallets. The hack was a devastating blow to the cryptocurrency industry and led to the eventual bankruptcy of Mt. Gox.
Since then, the exchange’s creditors have been fighting for restitution, with many fearing that they would never see their lost funds again. However, after years of legal battles and negotiations, a rehabilitation plan was finally approved in March 2021.
Under the plan, creditors will receive their share of the recovered Bitcoin and Bitcoin Cash, which have been held in a trust since Mt. Gox’s bankruptcy. The distribution will be based on the value of each creditor’s claim and will be made in cryptocurrency rather than fiat currency.
While some creditors may prefer to receive their restitution in fiat currency, the decision to distribute in cryptocurrency was made to avoid potential legal and tax issues. Additionally, many creditors may see this as an opportunity to hold onto their cryptocurrency and potentially benefit from future price increases.
The distribution process is expected to begin in May 2021 and could take several months to complete. However, this is a significant step forward for Mt. Gox’s victims, who have been waiting for years to receive restitution for their losses.
The rehabilitation plan also includes provisions for any remaining assets to be distributed to shareholders, including former Mt. Gox CEO Mark Karpeles. However, it is unclear how much, if any, will be left over after creditors have been paid.
Overall, the approval of the rehabilitation plan is a positive development for the cryptocurrency industry, as it shows that legal systems are starting to recognize the importance of protecting investors and holding exchanges accountable for their actions. It also serves as a reminder to investors to be cautious when dealing with cryptocurrency exchanges and to always do their due diligence before investing.
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