HomeCryptoMt. Gox: $9 billion to creditors 

Mt. Gox: $9 billion to creditors 

The bankruptcy trustee of the Japanese exchange Mt. Gox, which closed in 2014, announced yesterday that creditors have approved a plan to distribute more than $9 billion in Bitcoin.  

Return of funds to Mt. Gox creditors

About 99% of voters approved the reimbursement plan, and about 83% also approved the total amount. 

The trustee also made it known that, depending on the situation, the order confirming the plan should become final and binding in about a month’s time, i.e. around November 20. 

At that point, the insolvency administrator will make repayments to creditors, to whom a special announcement will be sent regarding the timing and manner of such repayments.

After the confirmation order will be definitive and binding, the creditors will be asked to send the information of their bank account on the official site of Mt. Gox claims.mtgox.com.

MT.Gox
MT. Gox. The history.

The history of Mt. Gox

When the exchange closed in February 2014, one BTC was only worth about $700, so since then its value has increased 93 times. This means that although there are few Bitcoins left in the bankrupt company’s coffers, their fiat currency value is now significantly higher than it was at the time of closure. 

Creditors were given a choice some time ago as to whether they preferred to be repaid in fiat currency, or in Bitcoin, with priority for repayment given to those who chose fiat currency. Those who chose to be reimbursed in Bitcoin will be distributed the funds remaining after the reimbursements paid in fiat currency. 

In September 2019, the bankruptcy trustee stated that there were 141,686 BTC left in Mt. Gox’s coffers, which would be worth more than $9 billion today. 

In February 2014, about 850,000 BTC were taken from the exchange, worth about $500 million at the time, which is far less than the current value of the funds available to the bankruptcy trustee.  

The refund in Bitcoin

Given that those who receive the Bitcoin refund will most likely receive much less BTC than they held on the exchange at the time of the bankruptcy, yet will receive a much higher fiat value, it is possible that they may decide to sell a significant portion of the Bitcoin they receive as a refund. This could significantly increase the selling pressure on the market, driving the price down. 

It is assumed that at first about $1.7 billion in fiat currency will be distributed to about 10,000 creditors by depositing it into their bank accounts, while the remaining about 125,000 BTC and 142,000 BCH should be returned later.

As yet, no details have been provided on how the BTC and BCH repayments will be sent out, not even the timing. 

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".
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