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Mt. Gox creditors to vote on compensation plan next month

Mt. Gox creditors to vote on compensation plan next month
Jordan
Major
5 months ago
2 mins read

The rehabilitation trustee of the defunct Japanese cryptocurrency exchange Mt. Gox has released an update on the client compensation plan.

An announcement from the trustee, Nobuaki Kobayashi, notes that a Tokyo court allowed creditors to proceed with the vote on the refund plan. 

The February 25, 2021 statement confirms that the Tokyo District Court ruled that there was no reason to stop the rehabilitation plan filed on December 15, 2020.

According to Kobayashi, the court issued a greenlight for the compensation timeline alongside the refund roadmap after a review.

The announcement adds that holders of voting rights will be determined on March 24, 2021. Elsewhere, September 10, 2021, is the deadline for notice of non-uniform exercise of voting rights.

The voting will be online and mailing with a deadline set for October 8, 2021. In-person voting will be on October 20, 2021, during the creditor meeting for the final resolution on the draft resolution plan.

Excerpt from “Order to Refer Draft Rehabilitation Plan to Resolution” document.

High profile hack

The exchange seized operation in 2014 after losing 850,000 Bitcoins in a high-profile hacking incident. At the time, crypto exchange Mt.Gox revealed that about 750,000 Bitcoins belonged to customers while the remaining 100,000 were its own. The platform later claimed recovery of 200,000 Bitcoins.

Following the hack, the court appointed Kobayashi to oversee the reimbursement process to compensate almost 24,000 victims. The trustee is reportedly holding 150,000 Bitcoins worth about $7.4 billion at current market prices. 

Worth noting is that the repayment process began several years ago, but creditor payments are pending. 

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.