A new relief plan has been drafted for the Investors of the now-closed Japanese bitcoin exchange Mt Gox. Per a report today, Gox Rising, a company based in Puerto Rico, is seeking to engage with Mt Gox creditors in an effort to purchase their Bitcoin claims.
The road to recovery of Mt Gox creditors’ fund
Gox Rising was established to help Mt Gox creditors recover their funds with the exchange, which is long-gone. The company is offering to purchase their Bitcoin claims by nearly double the exact price when the exchange was flagged to have collapsed.
The exchange had filed a case for bankruptcy six years ago, following the loss of over 850,000 BTC belonging to investors, as a result of mismanagement and hack. Only 200,000 BTC was finally realized out of the entire missing cryptocurrencies.
Fast forward to 2018, the law court in Japan changed the initial case for bankruptcy to civil rehabilitation. As reported, the latter case means that Mt Gox creditors will no longer receive their missing funds in cash, rather in the cryptocurrency itself, Bitcoin. During the period of Mt Gox collapsed, one BTC was valued at $451.
Ever since this initial case was changed, the progress on it has been tarried, and not even the proceedings were addressed. It is assumed that the whole matter might take up to a year to be concluded. Additionally, the distribution of the remaining Bitcoin to Mt Gox creditors was also delayed, amid the exchange not-ending lawsuits.
Gox Rising to pay $800 per BTC claim
To this point, Gox Rising wants to purchase these claims from Mt Gox creditors that do not want to wait anymore for the whole issue to be finalized. The company plans to acquire the Bitcoin claims at the price of $800 for one Bitcoin, which is nearly double their initial investment.
Not only in the cryptocurrency, but the company will also pay using escrow, with any fiat currency chosen by respective creditors, per the report. The payment will be processed after ten working days from the claim transfer date. A spokesperson for the company said:
We recognize that some investors may not wish to wait any longer to see what the final resolution and payout will be and how much longer that payout will be delayed.