Mt. Gox reparations continue…

The Tokyo District Court has made an order to file the Draft Rehabilitation Plan for Mt. Gox towards a resolution.

This recent ruling on the rehabilitation plans comes as positive news for its previous clients, however, this has had dire effects on Mt. Gox shareholders: Tibanne and Jed McCaleb. The now-bankrupt exchange is 88% owned by Tibanne Ltd., which itself is owned solely by the former CEO, Mark Karpelès. The remainder is held by Mt. Gox’s core dev and creator, McCaleb, who has shifted to working with Stellar.

In an announcement made Wednesday, February 25th by Mt. Got rehabilitation trustee, Nobuaki Kobayashi, it was detailed that the Tokyo court has allowed previous creditors of the now defunct Japanese cryptocurrency exchange to proceed with a vote on how to go about with the refund plan. The reparations for aggrieved clients of the cryptocurrency exchange will thus continue according to the suggested timeline for recompense, as detailed in a previous filing last December 15, 2020. 

Kobayashi, whom the Tokyo court has appointed as trustee representing Mt. Gox reportedly holds 150,000 BTC, which amounts to about US$7.6 billion. Since the exchange ceased operations in 2014 after losing some 850,000 BTC, with 100,000 of those belonging to Mt. Gox, and the rest to its clients. Mt. Gox officials later set forth to claim that they have recovered 200,000 BTC, following what has been known in crypto history as one of the most devastating hacks in the industry, having affected some 24,000 holders and clients.

Following the refund roadmap, previous creditors of the defunct exchange must comply with the deadline set by the Tokyo District Court, with voting on the new plans closing out by March 24th, 2021. Kobayashi informed Mt. Gox creditors that this voting mechanism may begin with their registration, which they may do by using the creditor numbers they’ve previously received.

According to Kobayashi, the court approved the compensation timeline alongside the refund roadmap after a careful review. As detailed in the court document, the deadline for notice of non-uniform exercise of voting rights is settled to be on September 10th, 2021.

All processes pertinent to the decision would be done both online and through traditional mail, with a deadline set for the vote on October 8th, 2021. Additionally, in-person voting would be done on October 20th, 2021, during which the creditor meeting on the final resolution on the currently drafted resolution plan would take place.

The reparations and civil rehabilitation plan, as handled by the Tokyo District Court and representatives of Mt. Gox, is designed to allow the trustee, Kobayashi, to craft his own plan according to capacity, and as approved by the voting body of previous holders.

This article originally appeared on CryptoDaily.