Creditor voting for Mt. Gox rehabilitation to end tomorrow
Voting for the rehabilitation plan of Mt.Gox, a crypto exchange that went bankrupt in 2014, will expire on the 8th tomorrow.
If approved, the draft rehabilitation plan of Mt. Gox would result in partial reimbursement to creditors who lost their Bitcoins from hacks on the exchange.
Mt. Gox repeated hacks from 2012 to 2014 saw large amounts of Bitcoin and deposits from customers illegally leaked, driving the company towards bankruptcy.
Initially, bankruptcy proceedings were underway due to the rejection of the civil rehabilitation application, but due to the large rise in the price of Bitcoin, some creditors demanded an application of the Civil Rehabilitation Law.
This resulted in the trustee presiding over the Mt. Gox civil rehabilitation case to open a voting channel to partially reimburse victims of the nearly decade-old hack.
For the rehabilitation plan to be approved, both the majority of the voting rights holders who voted and the approval of more than half of the total voting rights of all voting rights holders are required.
“If you do not vote, you will be deemed to have voted against the Draft Rehabilitation Plan for the requirement of the amount of the voting rights”, the notice said at the time.
Mt. Gox was one of the largest bitcoin exchanges before the hack, handling over 70% of global Bitcoin transactions. The series of alleged hacks led to the company losing 850,000 bitcoin – 2% of the current Bitcoin supply. Since then, the company has recovered 200,000 Bitcoins which will be used to reimburse the victims.
The remaining Bitcoin will be evaluated by the bankruptcy trustee at either 2014 fiat currency prices or as bitcoin, which will make a huge difference for the creditors who will be reimbursed.
According to on-chain analysis, Mt. Gox’s Bitcoin holdings are still ranked second among unlisted companies, which is equivalent to 0.6% of the maximum Bitcoin supply.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow