The civil rehabilitation process for the Mt Gox Exchange, infamously known for one of the first and biggest hacks the cryptocurrency market has seen, has been approved by the district court in Tokyo.
Initially the exchange was being charged under pretence of criminal bankruptcy, but after having uploaded a document on their website, it is now clear that the court has cleared them of those charges and having accepted a petition filed by creditors, have given the go ahead for Mt Gox’s civil rehabilitation.
For investors, this means that they will finally start receiving compensations for their loss and can start recovering their bitcoins still stored on the exchange. In the event that the company had remained in a criminal bankruptcy case, the exchange would have had to compensate all their customers in fiat and so this is a win-win for both the exchange and the market.
Since the Mt Gox claims filing system is currently down, all creditors that have incurred losses during the hack will have to refile their claims before the end of October in order to remain a part of the compensation and recovery of their lost assets.
‘Bitcoin Whale’ Will Not Sell BTC or BCH Anymore
One of Mt Gox’s trustees, Nobuaki Kobayashi, more famously known as the ‘Bitcoin Whale’ and infamously credited for the slump the market took between December 2017 and February 2018, has stated that he will not sell anymore BTC or BCH.
The ‘Bitcoin Whale’ allegedly single handedly sent the market on a dramatic downward slump, from its all time high in December 2017, by selling $ 400 million USD worth of Bitcoin and Bitcoin Cash between then and February 2018.
Following the announcement of the exchange’s rehabilitation, he has said that he will not sell either of the two currencies; Bitcoin and Bitcoin Cash, at least in the foreseeable future, until all the creditors have been properly reimbursed for their loss.
Mt Gox creditors should start seeing some money by mid 2019 and are expected to get almost $450 USD to every bitcoin, which is about $30 dollars lesser than the market average of 2014, but good nonetheless.
After a long battle in the courts and protests online held by and on behalf of the creditors, it is finally time to see one of the biggest exchanges in the market bounce back. Mt Gox continues to single handedly control over 137,890 BTC, which is about 0.8% of the total number of Bitcoins in the market.
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