Creditors of the now defunct Mt. Gox cryptocurrency exchange will vote on a proposed draft compensation plan in October.
February 26, 2021 | AtoZ Markets – The hacked and now defunct Mt. Gox cryptocurrency exchange administrator posted another update on the long process of compensating the exchange’s customers.
Nobuaki Kobayashi, a Tokyo lawyer appointed to act as civil rehabilitation trustee to manage Mt. Gox’s bankruptcy property funds, announced on Thursday that the Tokyo District Court ordered that “There was no reason to disapprove the draft plan rehabilitation. As previously reported, the plan was filed on December 15, 2020.
According to the announcement, the court approved a schedule for the compensation process that includes a vote by creditors on the proposed repayment plan. As part of the process, the trustee will initially determine creditors entitled to vote on March 24. After the voting deadline on October 8, creditors will attend a meeting on the settlement of the compensation plan on October 20.
Creditors will have three options for voting on the draft compensation plan, including online voting, written voting and face-to-face voting on the day of the creditors’ meeting. Selected creditors will be asked to choose one of these methods, Kobayashi wrote.
Founded in 2010, Mt. Gox was once the largest Bitcoin (BTC) exchange in the world, reportedly managing up to 80% of global BTC trading volumes. The exchange suffered a series of devastating hacks , losing a total of 1.35 million BTC in two incidents in 2011 and 2014.
After the second hack, Kobayashi was appointed to oversee the civil reimbursement process to compensate Mt. Gox’s 24,000 hack victims. According to reports, there are about $630 million and 150,000 BTC in the bankruptcy fund waiting to be distributed to its rightful owners. Although the repayment operation started years ago, creditors have not yet been repaid, after several delays.
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