With it’s move into civil rehabilitation Mt. Gox, the defunct Bitcoin exchange platform has embarked to halt bankruptcy proceedings. 2014 brought a crypto-infamy to Mt. Gox when it was declared bankrupt. Having suffered one of the most terrible hacks the platform became insolvent.
The Civil Rehabilitation
Officials announced on June 22 that Defunct Bitcoin exchange Mt.Gox has formally entered civil rehabilitation proceedings. This happened post the Tokyo District Court order on June 22, 2018 to Mt. Gox to move out of criminal bankruptcy and begin civil rehabilitation proceedings. Nobuaki Kobayashi, the Mt. Gox trustee issued a statement containing the ruling. The ruling will enable Mt. Gox creditors to receive compensation for their losses. As per the ruling Mt.Gox’s existing claims filing process facing a temporary halt due to it’s civil rehabilitation move.
Kobayashi who was taking care of selling vast tranches of Bitcoin reserves to reimburse Mt. Gox users who lost money in the exchange’s mass hack in late 2013 wrote in his new documentation :
The power and authority to administer and dispose of MTGOX’s assets is still vested exclusively in me, and I will implement the civil rehabilitation proceedings, including the administration of MTGOX’s assets and the investigation of claims, subject to the Tokyo District Court’s supervision.
His document also included a tentative schedule for the civil rehabilitation process. Claims submission can be done by creditors until October 22,2018. This deadline is applicable to both who have already filed claims and those who have missed the previous deadline. The proposed rehabilitation plan will be released in February 2019.
The bankruptcy proceedings have been halted due to the civil rehabilitation proceedings, there would not be any further selling of BTCs. The users are set to receive compensation in BTC in place of fiat currency as originally planned.
For Mt. Gox creditors the proposed civil rehabilitation is indeed a victory. A group of aggrieved creditors took this as a blessing and praised it by issuing the following statement:
Enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors of Mt.Gox in civil rehabilitation proceedings. This is the creditors’ victory.
Although the realization of victory is still awaited by creditors :
..However, this victory has not been realized yet. The victory will come to creditors when Mt. Gox makes payment to creditors and creditors actually receive such payment.