BeInCrypto –
The window has closed for Mt. Gox creditors to vote online on a civil rehabilitation plan to recover losses incurred after Mt. Gox shut down in 2014.
When Mt. Gox exchange shut down in 2014 due to a hacking incident that saw it lose $450M in bitcoin and $27.4M from its bank account, it left creditors in a quandary, having no way to pay them back. A Japanese court gave the go-ahead for a petition for a civil rehabilitation plan, in which creditors could receive a total of $6.8B in Japanese yen, bitcoin, and bitcoin cash if creditors vote in favor of the plan.
Market shock anticipated if creditors vote in favor
In the Mt. Gox hack, 850000 bitcoins were “lost”, of which 200000 have been recovered, which will be used to compensate the creditors, in the event that the majority are in favor. The voting process began on May 31, 2021, online voting ended on Oct 8, 2021, while in-person voting remains open until Oct 20, 2021. On October 20, there will be an announcement from the trustee of the Mt. Gox bankruptcy, on a timeline that will see creditors paid progressively, should the affirmative response to the rehabilitation plan be the majority vote. If the plan is not passed, the former CEO of Mt. Gox and its shareholders will be paid out at the price of bitcoin in 2014, $450, after creditors are paid out.
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