Court approves Mt.Gox creditors’ Bitcoin restitution plan

The Tokyo District Court approved the civil rehabilitation plan of the bankrupt Mt.Gox cryptocurrency exchange. This was reported by trustee Nobuyaki Kobayashi.

The proposal to compensate users presented in December 2020. In January, details of the plan emerged, and in February the court approved it for subsequent vote.

It started on May 31 and ended 20 October. About 83% of exchange users backed the restitution proposal.

According to Kobayashi, on the same day the court issued a ruling confirming the plan.

“Next, on 16 November 2021, the rehabilitation plan became final and binding,” wrote the trustee.

The timelines and sums of payments, as well as the details of the procedure, will be disclosed later.

Mt.Gox filed for bankruptcy in 2014. The restitution process was launched in 2018. Since then many in the community have warned that about 150,000 BTC (~$91 billion at current prices), which could be handed over to the exchange’s users, would flood the market and trigger a collapse.

The court’s final approval of the rehabilitation plan led to renewed discussion of the topic.

“They will undoubtedly sell, which will cause a serious crash,” said Mr. Whale.

According to him, the exchange’s clients are being returned the bitcoins they owned when prices were around $100–$1,000. On November 16, Bitcoin fell below the $59,000 level, but at the time of writing it was trading above $60,000.

“They will undoubtedly sell, which will cause a serious crash,” said Mr. Whale.

Earlier, Fortress Investment Group to buy their claims for 80% of value.

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