A rehabilitation scheme to compensate creditors for the now defunct crypto exchange Mt.Gox has been completed after confirmation by a Japanese court.
According to a statement Tuesday by Nobuaki Kobayashi, the guardian of Mount Gox, the rehabilitation plan, which was originally presented to Tokyo District Court in February, is now “final and binding.” The order to approve the rehabilitation plan in the Japanese judiciary is one of the last steps in a long process that began with the filing of a 2018 application to compensate the stock exchange’s creditors, which collapsed in early 2014.
Kobayashi said he would contact “details of the exact timeline, procedure and amount” to make payments to creditors who submitted claims in accordance with the approved plan. Although it is unclear whether payments will be made in bitcoin (BTC) or fiat, the announcement says that lenders may need to register their bank account information on the site to receive rewards, or they may “encounter problems.”
The message from Kobayashi comes after thousands of Mt. Gox, whose losses are estimated at billions of dollars. Nearly 99% of lenders affected by the cryptocurrency exchange crash in Japan approved the draft rehabilitation scheme, with applicants accounting for almost 83% of the total votes.
Plaintiffs can get paid fairly quickly, and Kobayashi indicated in October that a “final and binding” decision was the last major obstacle in the compensation process. However, some victims of the stock market crash reported a lack of information about the rehabilitation plan, which raised doubts about due dates:
RELATED: Mount Gox Lenders Can’t Get Anything If They Don’t Vote By Friday
Mt.Gox, first launched in 2010 by programmer Jed McCaleb and later acquired by Mark Karpeles, was one of the world’s largest exchanges in the early days of cryptocurrency. The hack in 2011 and subsequent exchange crash affected almost 24,000 lenders, most of them owners of cryptocurrencies.
These events resulted in the loss of 850,000 BTC, $ 460 million at the time and $ 51 billion at the time of publication. However, Kobayashi reportedly has around 150,000 bitcoins to pay creditors.