Mt. Gox Victims to be refunded investment lost to exchange hack

Mt Gox

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TL;DR Breakdown

  • Victims of Mt. Gox scam to be refunded
  • The 2014 Japanese exchange hack
  • How they plan to refund victims

After many years, victims of the Mt. Gox hack are now in line to get a refund for what they lost during the exchange hack.

The trustee of the defunct Japanese exchange Mt. Gox has commenced the voting process to reach a final agreement on the distribution of residual funds. This was contained in a letter sent to victims by Nobuaki Kobayashi on Monday.

The letter noted that the Tokyo District Court approved the revised version of the rehabilitation plan, allowing voting on the exact reimbursement mechanism as creditors of the defunct cryptocurrency exchange have been waiting on claims related to the exchange’s infamous 2014 hack.

Mt. Gox 2014 hack

The exchange hack was one of the world’s biggest crypto exchange hack when the crypto firm handled over 70 percent of all transactions on the Bitcoin network at that time. The exchange fell to several hacks the most recent of which occurred in February 2014, when more than 850,000 BTC were stolen.

After that hack, over 20,000 creditors have filed claims for reimbursements, with bankruptcy lawyer Kobayashi appointed to lead the case. A significant amount of the stolen Bitcoin is still missing after the hacks.

Rehabilitation plans for victims

The proposed rehabilitation plan would see creditors claim up to 90 percent of the remaining Bitcoin. The proposed payout would reimburse claimants in Japanese yen (JPY), Bitcoin (BTC), or Bitcoin Cash (BCH).

According to the current proposed rehabilitation plan, the entities who filed a claim for fiat will receive the claim’s full value. Moreover, the trustee also sold a portion of the original recovered amount to protect crypto creditors who filed for bankruptcy. They will be covered at least for the minimum amount of their bankruptcy.

Others will get a minimum base payment of 200,000 JPY ($1,800), deducted from their total claim.

The creditors, however, have until Oct. 8, 2021, to vote for or against the plan, and over 50 percent of all vote holders must agree to the plan to conclude.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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