The hacked cryptocurrency exchange Mt. Gox no longer needs to sell Bitcoin to return lost funds to customers. Lenders are preparing to recover lost BTC and BCH assets.
In 2014, Mt.Gox began bankruptcy proceedings, after the company's CEO Mark Karpeles said that the exchange had lost at hacker attack 850,000 bitcoins of their clients worth about $414 million.
It was later discovered that Karpeles withdrew 200,000 bitcoins from the exchange, which were not stolen during the attack. The rest of the bitcoins were most likely converted to fiat and probably lost forever. The US Department of Justice said in July that another suspect, Alexander Vinnik, had been arrested for money laundering and that he was involved in the hacking of the Mt. Gox.
After four years of waiting and litigation, Mt.Gox creditors have a chance to be compensated in Bitcoin rather than fiat, thanks to a rehabilitation process that replaced the bankruptcy process.
The new “Revised Basic Policy for the Preparation of a Rehabilitation Plan” describes a number of changes made under pressure from creditors. This plan aims to ensure that creditors' losses are covered within a specified time frame and in a specified currency, and also establishes an advantage in obtaining funds from affected creditors over shareholders.
Under the new approved policy, all Mt.Gox assets will be distributed to creditors to ensure full payment of all monies.
Creditors who have lost their Bitcoin and Bitcoin Cash deposits should receive repayment in the respective currencies instead of cash. Transfers of BTC and BCH will be carried out to the specified client accounts. All assets currently held in the Mt.Gox exchange trust fund, including 166,000 between BTC and 168,000 BCH, must be used to pay off debts to creditors during May-June 2019.
Creditors who deposited other altcoins will receive cash payments due to price volatility and increased risks.
Lawyers, Those representing victims continue to accept applications from creditors to schedule payments and implement a system that will allow creditors to receive their trading records. For creditors, the availability of their trading record is mandatory for approval of the compensation plan.
As of today, the above-mentioned assets are worth approximately $1.3 billion, according to CryptoSlate.
However, Mt.Gox does not have enough BTC to return all the bitcoins deposited by creditors.
Accordingly, all of Mt.Gox's assets, in such a situation, would be distributed to creditors, and not to shareholders.
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