Mt. Gox Victims Can Now Apply for Refund of Stolen Funds
Mt. Gox victims can now claim their losses via an online portal or offline filling after 5 years of waiting.
Clients of the ill-fated Bitcoin Exchange Mt. Gox now have an opportunity to file for the return of their stolen money.
An announcement posted on the collapsed exchange’s website has outlined how clients can use the online tool to submit claims.
It also addresses those clients who may be unable to use the online tool. These users can download the proof of rehabilitation form and fill in all the required details, before signing it and sending via post to the office of the Rehabilitation trustee in Tokyo Japan.
Civil Rehabilitation Trustee for Mt Gox, Nobuaki Kobayashi, also announced that individuals could now begin the process of filing their claims. However, corporate investors will have to wait until a later date.
Part of the statement on the notorious exchange’s website reads:
“As with the bankruptcy proceedings, the Rehabilitation Trustee has built a system on which users of MTGOX’s Bitcoin exchange can file proofs of rehabilitation claim with respect to the claims for the return of cryptocurrency and money against MTGOX.”
The rehabilitation trustee has encouraged those seeking to place claims to do so using the online method. He feels that this option is beneficial to all those involved, including the users.
It will ensure that the process is executed smoothly and efficiently. Additionally, it saves users time and money compared to the offline method that has no other particular advantage.
The deadline set by the court for filing the rehabilitation claims is October 22, 2018. Assessment of the claims will carry through February 2019, before the trustee officially redistributes the remaining assets of Mt Gox.
About Mt Gox
Mt. Gox launched operations in 2010 and became the top Bitcoin exchange quickly. By 2013, the platform processed over 70 percent of all Bitcoin trades. However, the worst happened in February 2014.
The site went offline, only to resurface with the shocking news that more than 850,000 bitcoins had vanished.
It was the biggest hacking heist of BTC in the history of crypto, even though the exchange reported recovering about 200,000 bitcoins.
Huge sell-offs followed, many times being cited as the cause of price declines over the year.
On November 24, 2017, a petition at the Tokyo District Court lodged civil rehabilitation proceedings. The court heard that petition on June 22, 2018, with the outcome being that the court stopped the previous proceedings that involved bankruptcy claims.
The Tokyo District Court appointed Nobuaki Kobayashi as Civil Rehabilitation Trustee. By stopping the bankruptcy proceedings, the court allowed the trustee to pay the claims in non-monetary form.
Unlike in bankruptcy proceedings where non-monetary assets are converted into monetary assets before being paid out, civil rehabilitation proceedings don’t have that demand.
It, therefore, means that compensation for the Mt Gox losses can be paid out in the form of Bitcoin (BTC) and not fiat currencies. Considering the price of Bitcoin now, the payout is likely to be huge.
Mt. Gox Lawyers have revealed that there is about 160,000 Bitcoin (BTC) and about a similar amount of Bitcoin Cash (BCH) that will be paid out.
It has been a long time coming for the investors who had their holdings on the infamous Bitcoin exchange.