Mt Gox Lays Out Draft Rehabilitation Plan; Revealing Some Crypto's Will Be Liquidated to Fiat

Mar 25 2020

The Mt. Gox trustee has the intention to liquidate cryptocurrencies that aren’t Bitcoin (BTC) or Bitcoin Cash (BCH), says a rehabilitation plan draft.

Attorney Nobuaki Kobayashi presented creditors the rehabilitation draft’s outline on Tuesday, just before meeting with them on Wednesday. The new plan may be an important step towards putting an end to the case on which creditors are waiting for a solution since 2014. Back then, Mt. Gox was hacked for 850,000 BTC.

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What Does the Draft’s Outline Say?

The draft’s outline mentions that creditors who filed a claim for either fiat currencies, BTC or BCH are going to receive these assets back, through bank transfers or transactions in cryptocurrencies to their designated custodians or exchanges’ addresses. The document also reads that the other type of assets, those that aren’t BTC or BCH, will be liquidated into cash as much as possible. Here’s what trustee Kobayashi said about fiat currency claims:

"Fiat currency claims allowed in the rehabilitation proceedings ... will be given priority in payment, to secure the interests of such fiat currency claims."

The rehabilitation plan draft plan still needs to be filed to a court and approved. BTC and BCH creditors can make requests for cash payments if they want to.

The Lawsuits Against Mt. Gox Are Still Going On

In the meantime, Mt. Gox is still going through a series of lawsuits and claims. Mark Karpelès, the former CEO of the exchange, is caught up in a lawsuit with Gregory Greene, whereas Coinlab, a former partner of Mt. Gox, has filed for a $16 billion (1.7 trillion yen) claim for bankruptcy against the defunct company, after going down from a $75 million claim asked for in the beginning.

Mt. Gox has 24,000 creditors who are still waiting for their funds to be rehabilitated by the trustee Kobayashi. Starting with February, the Fortress Investment Group offered $1,300 per BTC lost to purchase Mt. Gox’s claims, after offering $755 in December last year.

[Also ReadTeeka's Final 5 Coins to $5 Million is Coming Despite Crypto Market Losing Over $100 Billion in Value]

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