Mt Gox rehab proposal hits a snag due to opposition by creditors

Mt Gox rehab proposal has hit a snag again after the submission deadline was pushed after receiving a negative response from many creditors. The meeting took place last week where a proposal was put in front of the creditors. It said that the creditors can have their reimbursement in Bitcoin but it might be possible that the funds would be insufficient to settle all the claims made.

The major reason for the pushback is said to be that the majority of the creditors want their reimbursement in Bitcoin only, instead of receiving fiat currency. As reported, they still want to stay in the market. Bitcoin, which was once trading above $10,000 a few months ago, is now in the $6000 range, which can be said as an undersell for the creditors.

Mt Gox rehab proposal deadline extended by the court

The deadline for the Mt Gox rehab proposal was set on 31st March by the court. However, after the recent pushback by the creditors, the Tokyo District Court has extended the deadline to July 1 of this year. The notice which was released on March 30 revealed that the rehab proposal will go into further changes to meet the demands of the creditors.

Mt Gox, which used to handle more than 70% of the world’s Bitcoin transactions in 2013 and 2014, went under in February 2014 and filed for bankruptcy after hackers stole around 850,000 BTC from Mt Gox’s servers. Further investigation found the CEO guilty of cooking the books and tampering the records. In the end, Mt Gox was left with 141,600 BTC and 142,800 BCH. In 2018, rehab trustee N. Kobayashi sold BTC worth $400 million which further caused the majority of cryptomarket plunge.

The bankruptcy proceedings were put to halt after Mt Gox started civil rehab in June of 2018. Since then, the creditors have been hopefully waiting for their money.

 

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