The Mt Gox exchange is preparing the final phase of its long and sordid collapse. Creditors of the defunct Bitcoin exchange have begun preparing for repayments preceding a court’s verdict made in June. The disgraced exchange is expected to return approximately $1.3 billion in the form of Bitcoin Cash (BCH-USD) and Bitcoin (BTC-USD) by the summer of 2019.
The creditors of Mt Gox exchange have since produced an amended basic policy regarding the repayment of their Bitcoin. This comes soon after the Tokyo District Court ruling ordering a civil rehabilitation. It is similar to an official state of bankruptcy in the Japanese system.
A proposal
On June 29, 2018, the lawyers acting on behalf of the exchange’s creditors presented their proposal. The proposal suggested that all of the exchange’s assets should be shared among the creditors. Additionally, it proposed that all the fiat cash creditors who were referred to as monetary creditors should be paid in full.
Even though Mt Gox is short of Bitcoin, it was proposed that all the creditors who had deposited the said digital coin to be paid in BTC or BCH. The policy stated, “Mt.Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt.Gox should be distributed to creditors and not to shareholders.”
Lawyers for the exchange’s creditors stated in the amended policy that the BTC and BCH tokens should be sent to the exchanges that the creditors hold accounts or they can easily open new accounts with.
Repayments soon after approval
Since the exchange is already holding 166,000 BTC as well as 168,000 BCH, it should consequently pay the creditors immediately after the procedure is approved. As per the data from CryptoSlate, the said assets hold a value of around $1.3 billion currently.
Those who had deposited Alternative coins to BTC and BTC will be paid through cash. Altcoins tend to be very volatile and prone to security risks when transferring them from one wallet to another. Thus, the creditors termed it as unrealistic.
Meanwhile, the final rehabilitation plan is expected to be presented back in court, latest February 2019. If the plan is approved, payments are expected to be made anytime from June, the same year.
