The proposed civil rehabilitation plan for creditors of Mt. Gox has now come to an end, what’s in store for them now?
Most cryptocurrency enthusiasts are familiar with the Mt Gox hack, which was one of the largest cryptocurrency hacks of 2014. The victims were stuck in a loop of drawn-out processes and delays after the Tokyo-based exchange was robbed of thousands of Bitcoin.
The Tokyo District Court issued a civil rehabilitation plan order in February 2021, allowing claimants to vote on it. The four-month process began on May 31st, and creditors were given the option of voting by mail or electronically.
As the voting period came to an end, Blockstream founder Adam Back urged claimants to vote. The matter was urgent because if more creditors failed to vote, the result would be automatically recorded as “no.”
LAST REMINDER if you got @mtgox’ed you really need to vote for the rehabilitation plan. missing votes count as NO (stupid I know). if they don’t get enough YES votes matching > 50% of claim value, you don’t get paid. VOTE NOW vote ends TOMORROW friday 8th https://t.co/XH5e8BtTnA— Adam Back (@adam3us) October 7, 2021
If the proposal is approved, creditors would get at least a partial reimbursement of their lost cash, which will be paid in Japanese yen, Bitcoin, and Bitcoin Cash.
What’s the outcome now that the deadline has passed?
According to reports, a creditor’s group coordinator, MtGoxLegal, stated that the creditors had reached out to the Tokyo District court representative and the Trustee for assistance in determining whether or not the 50 percent threshold had been crossed, but that they had not received any such assistance.
According to the source,
“If we had been able to get an update, say, after half of the voting period had passed, and that update indicated that the participation rate in the vote was worryingly low, then we could have tried to fundraise and allocate those funds to bring more attention to the issue.”
The creditors are concerned that if the proposal is not accepted, the process would revert to Mt. Gox bankruptcy, which CEO Mark Karpeles has already filed for.
The coordinator went on to say,
“It’s such a huge difference between what creditors receive under the civil rehabilitation plan, and what creditors would receive if we reverted to bankruptcy, so it’s difficult to see anyone voting against.”
The procedure has taken a long time, and the creditors have become increasingly frustrated as time has gone.
