Court approves Mt.Gox creditors’ restitution plan

The trustee overseeing the collapsed cryptocurrency exchange Mt.Gox, Nobuaki Kobayashi, has announced that creditors will vote on the restitution plan. The exchange’s wallet holds 137,891 BTC (roughly $6.3 billion at the time of writing).

The Tokyo District Court approved the document, proposed by the trustee in December 2020. The vote will be conducted online, by mail, and in person to reach a decision by October 20, 2021.

The plan for restitution that was published online proposes payments in fiat, Bitcoin, and Bitcoin Cash. The remaining Mt.Gox cryptocurrencies will be sold. Fiat payments are a priority — part or all of the Bitcoin and Bitcoin Cash may be sold to cover them.

The first payments will go to creditors who would have received them had the bankruptcy procedure continued. The trustee will also make basic payments of 200,000 yen (~$1,920) to each creditor.

As the basis for cryptocurrency payments, Kobayashi proposed an exchange rate of Bitcoin and Bitcoin Cash to yen at the start of the civil rehabilitation proceedings.

• 749,318.83 yen per 1 BTC (~$7,205);
• 97,481 yen per 1 BCH (~$940).

The exchange Mt.Gox filed for bankruptcy in 2014. The restitution process was launched in 2018, but Kobayashi has repeatedly asked the court to amend the timing for providing the restitution plan.

The never-ending story: will Mt.Gox’s payouts to investors crash the price of bitcoin?

In April 2019, the trustee notified users who had not sought compensation that they would also receive funds. Some creditors sold the rights to their bitcoins to interested parties.

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