In brief
- Mt. Gox creditors may soon receive billions of dollars worth of Bitcoin.
- It has been an uphill struggle for those who lost money amid the Mt. Gox collapse in 2014.
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Mt. Gox creditors are expected to recover more than $9 billion worth of Bitcoin, according to a rehabilitation plan document filed with the Tokyo District Court for the now-defunct crypto exchange.
The term creditors here refers to the various victims who lost money when the crypto exchange was hacked in 2014.
“The Rehabilitation Trustee would like to express sincere gratitude to all involved parties for their understanding and support,” the Trustee said in the rehabilitation plan document.
“Depending on the situation, the confirmation order is expected to become final and binding in approximately one month from today,” the Trustee added.
Once approved, creditors will need to register their bank accounts on Mt. Gox’s online filing system to receive payments. “Rehabilitation creditors unable to log into the system may encounter difficulties in receiving repayments,” the Trustee also said.
“It’s a date every market participant needs to keep their eye on,” reportedly said BlockTower Capital portfolio manager Avi Felman. Felman added there will “likely be significant volatility around the event, and if Bitcoin is overheated, it could mark a local top as holders finally are able to take profits on their positions.”
Creditors will be able to receive about 90% of the assets they are owed.
The total sum held by the Trustee is reportedly valued at over $9 billion, taking into account Bitcoin’s latest all-time high registered earlier this week.
What happened to Mt. Gox?
Mt. Gox was a crypto exchange that has become infamous in crypto history.
The exchange went offline in February 2014 after withdrawal problems began as early as February 7, 2014. It soon became clear the withdrawal problems were a precursor to something far worse.
The now-defunct crypto exchange was also handling most of the world’s Bitcoin transactions at the time—approximately 70% of them. When Mt. Gox collapsed, it triggered an early Bitcoin price crash, as the price of the flagship cryptocurrency fell from approximately $800 to $400, a far cry from today’s prices.
Since the exchange’s collapse, it has been an uphill struggle for Mt. Gox creditors, who have dealt with rehabilitation plan delays and hefty fees in a drawn out battle to retrieve lost funds.