Lawyers representing defunct Japanese Bitcoin exchange Mt. Gox have released new updates to the company’s civil rehabilitation plan which highlight important new details regarding its creditor reimbursement strategy. Mt. Gox was hacked in 2014 for $473 million dollars—the second largest in history following the $534 million hack of Japanese crypto exchange Coincheck earlier this year.
The Revised Basic Policy for Preparing a Rehabilitation Plan, published August 1, reads,
“The rehabilitation plan outline we have prepared is merely a proposal as of this point in time. We would like to hear your opinions, as creditors, and make revisions to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent possible.”
The new policy updates aim to keep reimbursement plans as simple as possible. The company states that it is now capable of returning all Bitcoin (BTC) deposited by creditors. Repayments to creditors will be made in the form of BTC and Bitcoin Cash (BCH). Payments will be made to creditors’ accounts on a crypto exchange of each creditor’s choosing.
“We think it desirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily,” reads the policy update.
Mt. Gox is also reported to have large cash holdings that it acquired through the sales of BTC and BCH. It plans to distribute these funds to monetary creditors first, then BTC creditors directly to cash accounts on exchanges chosen by the creditors.
Regarding altcoin payments, the report reads,
“It is unrealistic to repay BTC creditors in altcoin and therefore altcoin should be exchanged to cash and paid to creditors . However, there are no exchanges which deal with all types of altcoins, there is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins. Therefore, the trustee should proceed with the sale of altcoins with careful consideration of these matters.”
Mt. Gox is ensuring monetary creditors receive full payments, with the first plans of payment scheduled to take place in May or June of 2019. In addition to cash reserves and other derivatives, Mt. Gox is said to currently hold 166,000 BTC and 168,000 BCH.
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