Rehabilitation plan for defunct bitcoin exchange Mt Gox is now finalized


The years-long slog by creditors of the defunct bitcoin exchange Mt Gox is nearing the end after a rehabilitation plan approved last month has been finalized.

The finalization was announced in a letter penned by Mt Gox trustee Nobuaki Kobayashi. Tuesday's announcement follows the approval by a "large majority" of creditors on October 20, according to the letter. 

"The Rehabilitation Trustee would like to express sincere gratitude to all involved parties for their understanding and support, which led to the Rehabilitation Plan becoming final and binding. The Rehabilitation Trustee will then make repayments to rehabilitation creditors holding allowed rehabilitation claims in accordance with the Rehabilitation Plan," Kobayashi wrote. "An announcement will be made to rehabilitation creditors on the details of the specific timing, procedures, and amount of such repayments."

A rehabilitation plan was filed in Tokyo court nearly a year ago, as The Block previously reported. 

The Mt Gox saga began in 2014 when the bitcoin exchange collapsed amid fraud and mismanagement allegations. Its CEO, Mark Karpeles, was accused of embezzlement and data falsification. Karpeles was ultimately found guilty of falsifying records and received a suspended prison sentence. Mt Gox declared bankruptcy after its collapse, later embarking on a civil rehabilitation process that now appears to be nearing its conclusion.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Digital asset economy fuels instant settlements innovation

Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC