Tokyo District Court Approves MT GOX Rehabilitation Plan

A light of hope has been seen for the Creditors of Mt Gox exchange to reclaim their lost bitcoins. Yesterday the district court of Tokyo nominated the trustee of MT GOX, Nobuaki Kobayashi, and decided on the rehabilitation plan for the company. According to an update posted on the site of MT GOX, which is the first on the official site since March 2019, the detailed plan is under review and has not yet been provided.

MT GOX had been known for being the world’s largest digital exchange, having thousands of users with 850,000 Bitcoins, handling more than 70% off worldwide Bitcoin transactions until February 2014, when it was bankrupted as a result of hacking. Hackers took hold of the MT GOX computer of auditors, and the price of one Bitcoin was changed to one cent. Then they started to buy Bitcoins using the keys of customer’s hot wallets and successfully obtained more than 2000 bitcoins. According to the investigation reports, it was suspected that the activity of hacking was going on since 2011 when the management and employers were busy enjoying the successful tenure.

Till now, only a small number of digital coins have been retrieved, but most of them are still stolen or lost. For each claimed Bitcoin, the estate will have only 0.23 coins to repay. A positive side is that Bitcoin was traded at $489 on the day when the company was bankrupted, which is now trading around $50,000 at 76 times higher. It means that, If in 2014, you had 100 Bitcoins worth $48900, then now today you can have 23 coins worth $11,50,000.

According to the published reports, initially, the legislation for the recovery of credits was dragged because of the $16 Billion claims by the coins lab, which was the biggest creditor in the MT GOX exchange in 2013- 2014. However, this new agreement is hopefully going to allow smaller investors to recover their credits.

More than 20,000 victims who have already filed thousands of claims are still keeping an eye on the proceedings of the Tokyo district court for the compensation of their loss. This Rehabilitation agreement is planning for the investors to get early payments by cutting their losses or wait for the proper proceedings of legal actions to complete and recover 90% of their digital credit.