In Brief:
- Rehabilitation Plan is now in action, repayments of the rehabilitation creditors would soon be initiated,
- The Rehabilitation Plan is for Mt Gox users who were severely affected by the collapse of the exchange in 2014.
- The estimated losses are worth billions of dollars for which the petition was filed in 2018.
According to the announcement dated November 16, 2021, the Rehabilitation Plan originally filed with the Tokyo District Court in February is now finalized. Nobuaki Kobayashi, the Rehabilitation trustee of MtGox Co. Ltd., implied that the confirmation of the ‘Final and Binding’ ruling was long awaited since it was the final step in a long process that began with a 2018 petition.
The petition was regarding the compensation of creditors of the exchange that collapsed in early 2014. The Rehabilitation Plan was approved by the majority of concerned creditors on October 20. 2021. On the same date as well, the Tokyo District Court made a confirmation of this recovery Rehabilitation plan. Consequently, on November 16, 2021, the Rehabilitation plan became final and binding.
As per an update from Kobayashi, On October 8, thousands of Mt. Gox users favored the recovery plan to compensate for their losses. The estimated losses are approximately worth over billions of dollars. Roughly 99% of the creditors had an impact due to the collapse of the Japanese crypto exchange. These 99% claimants represent 83% of the total number of favored votes.
In 2014, the bitcoin exchange, Mt Gox, collapsed amid fraud and mismanagement of the assets. Mark Karpeles, who was CEO of the exchange at that time, allegedly falsified the data and was ultimately found guilty of falsifying records. As a result, he received a suspended prison sentence. Mt Gox declared bankruptcy since then and later initiated a rehabilitation process which is now final and binding.
As mentioned in the notice on Tuesday, Nobuaki Kobayashi expressed his gratitude to all the involved parties for supporting the process. He also announced that soon he will be making repayments to rehabilitation creditors who have claimed for the compensation.
He further emphasized that the announcement will be made to rehabilitation claimants regarding details of the specific timings, procedures, and amount of repayments. However, some claimants have complained about infrequent communications in regard to the rehabilitation plan, concerning the timings of the repayments.
The repayment process would be done through MtGox’s Online filing system which creditors have to fill to receive payments. However, self-approved creditors with the creditor number starting with Z2 are not eligible for registration to claim the repayment. The rehabilitation trustee will expand the scope of remaining creditors to register on the system in phases and a corresponding announcement will be made accordingly.
