CRYPTO

Mount Gox Trustee announces approval of rehabilitation plan, meaning creditors could soon get billion

The now defunct Crypto Exchange Mt. Gox’s creditors have widely approved a rehabilitation plan to compensate them for the billions of bitcoins lost.

Mount Gox trustee Nobuaki Kobayashi announced Wednesday that about 99% of lenders affected by the collapse of the Japan-based crypto exchange have approved a draft rehabilitation plan that was originally filed in Tokyo District Court in February. In addition, he claims that voting for the plan represents about 83% of the total voting rights.

This decision was made by thousands of Mt. Gox follows the Oct. 8 vote from users whose losses are estimated at billions of dollars. Kobayashi said once the rehabilitation plan becomes “final and mandatory”, the distribution of resources will probably not begin for at least a month. He added that lenders should expect to register their bank account details on the website as soon as possible.

First launched by programmer Jade McClabe in 2010 and later purchased by Carpless, Mount Gox was one of the largest exchanges in the world in the early days of crypto. A hack in 2011 and the subsequent collapse of the exchange in early 2014 affected about 24,000 lenders – mainly those who hold cryptocurrencies.

These events resulted in a loss of 850,000 bitcoins (BTC), about $ 460 million at the time and $ 56 billion at the time of publication. However, Kobayashi has only said users have 150,000 BTC to repay.

A Japanese court originally approved a petition in June 2018 for the exchange of Mount Gox creditors to begin civil rehabilitation. This deadline was repeatedly extended for various reasons, but in the end the Tokyo District Court accepted and issued the current draft of the rehabilitation plan in December 2020. An order in February allowing lenders to vote on it.

Related: Crypto City: Tokyo Guide

The remnants of a super volcano on Japan’s main island of Kyushu have been the site of Mount Gox’s decision to erupt for the first time in more than five years. Although El Salvador’s President Naib Bucel has suggested using the country’s volcanoes for bitcoin mining, there is apparently no such arrangement in Japan.