Mt. Gox revised basic rehabilitation policy has been released. The announcement comes in the limelight after the Tokyo District Court ordered for the commencement of civil rehabilitation proceeding and the previous bankruptcy case to be re-worked upon.
Mt. Gox, the cryptocurrency exchange platform that was responsible for the trade of 70% of BTC transaction in the world made history in the space because of the Bitcoin [BTC] theft which occurred on February 2014. The theft resulted in a lot of customers losing their BTC on the platform and Mt. Gox filing for a bankruptcy.
The exchange platform lost around 750,000 BTCs of the customers and 100,000 BTCs of its own. An approximate of 7% of all the Bitcoins around the world was lost in the theft. Soon after this, Mark Karpeles, the CEO of Mt.Gox when the hack took place, announced that he found cold wallets which had a lot of Bitcoin. These Bitcoins will be used by the platform to payback to all the creditors of the platform.
Initially, the creditors’ claims were registered in Japanese Yen due to the Japanese bankruptcy law. Once the creditors were paid in Yen, the remaining 160,000 Bitcoin and Bitcoin Cash would be distributed to the shareholders as a part of the liquidation.
This led to the creditors filing for a civil rehabilitation where the creditors would have to be paid back in cryptocurrency they lost due to the theft. All the assets which were distributed to the shareholders will be taken back and given to the creditors leading to the creditors’ victory. The case was held on 22nd June 2018 and the deadline for the proposed rehabilitation plan is on 14th February 2019.
The basic policy for the rehabilitation plan was published on 29th June 2018 and the revised basic policy for the rehabilitation plan has revisions made for the initial policy. The policies for the plan are:
The rehabilitation plan should be simple and the implementation should have a high degree of certainty:
- The plan has to be simple in order to complete the first payment as soon as possible
- The plan should consist of an implementation plan which is highly certain and realistic
No distribution to shareholders:
- All the assets have to be distributed to the creditors and not the shareholders
Bitcoin creditors will be repaid in Bitcoin [BTC] and Bitcoin Cash [BCH]
- Making payments in BTC and BCH to all the Bitcoin creditors is considered as a simple and effective and minimizes the transaction costs
- It is considered appropriate to pay BTC creditors in BTC and BCH instead of cash
- The BTC and BCH have to be sent to the creditor’s exchange account or to an exchange where it is easier for the creditor to open to account. The main reason for this is because the converting the enormous amount of cryptocurrency to fiat would lead to the decline in the price of the cryptocurrency and since the market is considered highly volatile it would be difficult to decide when to sell the cryptocurrency [Revised]
- The cash which is held by the platform at present because the sale of BCT should be given to the BTC creditors in cash without converting it to Bitcoin. The cash has to be sent to the creditor’s accounts [Revised]
- Altcoins held by the exchange platform should be converted to cash and distributed to the creditors
- The trustee has to be careful during the sale of the altcoins as not many exchanges support all the altcoins and the sale could have an adverse effect in the altcoin market and would also lead to security problems
Monetary creditors will be paid in full:
- Creditors will be paid in full to the amount approved during the bankruptcy filing
First payment to the creditors should be made after the approval and confirmation of the rehabilitation:
- The first payment to the creditors had to be made as soon as possible proceeding the approval and confirmation of the rehabilitation plan as the creditors have been waiting for more than 4 years
- All the assets, the BTC and BCH have to be paid to the creditors as a part of the first payment
Additional Investigation and Payment to be made if residual or new assets are discovered:
- Mt.Gox pay the assets which are to be fixed as additional payment to the creditors
- The additional payment should be made by fixing the amount of non-fixed assets by transferring them to third parties
- The additional investigation expenses of the lost BTC should be carried out by Mt. Gox
No sponsor will be selected unless it is advantageous to the creditors:
- The appointment of sponsor for Mt. Gox is not required as the company has already suspended their business. This may also hinder the early payment plan as Mt. Gox would take a lot of time to find for a sponsor company.
Providing the trading records should be taken care of by Mt. Gox:
- Mt. Gox has to be responsible to introduce systems that will allow the creditors to obtain their trading records which is indispensable approval and disapproval of the civil rehabilitation plan
The post Mt. Gox revised basic policy for the rehabilitation plan has been released appeared first on AMBCrypto.
Source: AMBcrypto
Original Post: Mt. Gox revised basic policy for the rehabilitation plan has been released
