Mt. Gox finally receives go-ahead to compensate victims of 2014 hack

24 Jun, 2018
by Richard Allen
News
Mt. Gox finally receives go-ahead to compensate victims of 2014 hack

Mt. Gox has without a doubt been one of the most notorious exchanges ever since it was hacked back in 2014 and lost over 800,000 bitcoin. Now, however, Mt. Gox has the go-ahead for the commencement of the civil rehabilitation process, NewsBTC reports.

Originating from the 2014 hack, the Mt. Gox catastrophe has resulted in legal battels waged between the exchange and its creditors, the thousands of users who lost their bitcoin. Recent court documents, however, suggests that creditors might finally recieve compensation.

On June 22, Nobuaki Kobayashi, the now infamous Mt. Gox trustee, released a document giving an update on Mt. Gox’s legal situation. The document states that the exchange has finally received confirmation to commence the civil rehabilitation process. This will put a temporary hold on Mt. Gox’s bankruptcy court case in order to ensure that all debts are paid off before the continuation of the bankruptcy proceedings.

The document affirms that users scheduled to get a “Bitcoin Claim” will receive bitcoin instead of Japanese Yen, in agreement with Japanese civil rehabilitation law.

Kobayashi wrote:

“In bankruptcy proceedings, non-monetary claims are converted into monetary claims based on the valuation as at the time of the commencement of bankruptcy proceedings. In contrast, in civil rehabilitation proceedings, non-monetary claims are not converted into monetary claims at the time of commencement of the civil rehabilitation proceedings.”

In other words, Kobayashi is now legally unable to sell any more of the BTC in his possession. At least until the bankruptcy case continues.

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