Mt. Gox May To Start Paying Back Its Creditors by Next Year!

The defunct bitcoin exchange Mt. Gox says it will start paying back the people it owes money perhaps by next year, according to an announcement today from the exchange’s trustee, Nobuaki Kobayashi. The exchange grew quickly between 2010 and 2014, until an attacker slowly drained the exchange of bitcoins, forcing it to file for bankruptcy.

Those seeking to recoup funds from Mt. Gox, once the world’s largest by trade volume before it dramatically collapsed in 2014, resulting in hundreds of millions of dollars in losses, could see their money sometime in the next year as the civil rehabilitation process moves forward.

Notably, Kobayashi’s document implies that creditors seeking to regain their lost funds in bitcoin may receive larger amounts of cash than those who originally sought to be repaid in fiat currency when the exchange began bankruptcy proceedings.

It states:

“In bankruptcy proceedings, non-monetary claims are converted into monetary claims based on the valuation as at the time of the commencement of bankruptcy proceedings. In contrast, in civil rehabilitation proceedings, non-monetary claims are not converted into monetary claims at the time of commencement of the civil rehabilitation proceedings. Therefore, in the civil rehabilitation proceedings in this matter, claims seeking a refund of bitcoins (‘Bitcoin Claims’) will also not be converted into monetary claims after the commencement of the civil rehabilitation proceedings.”

Creditors seeking to be paid back in bitcoin will receive bitcoin back, which could now be worth more than it was when Mt. Gox declared bankruptcy. At the time the bankruptcy proceedings started, bitcoin was worth $440 per token. Bitcoin is worth more than $6,100 per token at the time of writing.

Kobayashi says in the announcement that he’ll update creditors on the state of Mt. Gox’s assets during a September 26th meeting in Tokyo. Those who claim Mt. Gox owes them money will have between then and October 22nd to file their requests and provide evidence to back up their claims.

A proposal for fulfilling the rehabilitation requests will then be submitted to the court by February 14, 2019, according to Kobayashi.

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