Mt Gox Creditors File Petition To Demand Recovery Payments In Bitcoin, Report Says

December 13, 2017 6:39 pm Published by

A petition seeking a civil rehabilitation process has been filed in Tokyo by Mt Gox creditors to collect payments in bitcoin, Cryptocoinsnews reported Wednesday.

A Nikkei report says creditors of Mt Gox filed the petition in Tokyo District Court seeking to halt bankruptcy proceedings and instead switch over to a civil rehabilitation process.

Mt Gox was once known as the largest bitcoin exchange by trading volume before it went under in 2014. The filings will help determine payments owed to creditors at the market value of the company’s assets at the time of bankruptcy, the report said. The market value of bitcoin at the time of Mt Gox’s demise was just under $450, compared to present day prices of just below $17,000.

Creditors’ claims, Cryptocoinsnews reported, are limited to a maximum value of $480, one Mt Gox creditor told CCN last month. Mt Gox’s former chief Mark Karpeles is expected to take the majority of the profit from the bankruptcy’s proceedings – in the billions Wednesday, the report said. Under current proceedings, Mt Gox is expected to have a surplus of more than 200 billion yen ($1.764 billion) after payments to its creditors – in fiat yen, Cryptocoinsnews reported.

An investigation into the bankruptcy recovered 200,000 bitcoins, approximately $3.4 billion in today’s prices, the report said.

As a result, creditors are asking the court to pause Mt Gox’s bankruptcy proceedings and pivot to a civil rehabilitation process that will enable them to receive recovery payments in bitcoin – which is far more valuable today.

The Tokyo District Court will consider the creditors’ petition and is expected to make a decision in early 2018., Jack Durschlag

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