Mt.Gox Creditors Revise Proposal to Claim Bitcoin Repayments

Released August 1, 2018, Mt.Gox creditors revised their proposal to claim Bitcoin repayments and expedited compensation procedures.

Mt.Gox creditors released a revised basic policy for their Bitcoin repayments following the Tokyo District Court's ruling to order civil rehabilitation in June 2018.

Lawyers representing Mt.Gox creditors released an initial proposal for rehabilitation proceedings on June 29, 2018.

The policy stated that all Mt.Gox assets would be distributed to creditors and "Full payment to the monetary creditors will be made."

Creditors who deposited Bitcoin would be repaid in BTC and BCH, instead of cash.

The policy also mentioned that Mt.Gox does not have enough BTC to return all Bitcoin deposited by creditors.

"Mt.Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt.Gox should be distributed to creditors and not to shareholders."

In the revised policy update, lawyers representing Mt.Gox creditors stated that "BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily." The revised policy further states that all assets currently held by Mt.Gox, including 166,000 BTC and 168,000 BCH, be paid to creditors immediately following the procedure's approval.

Creditors who deposited cryptocurrencies other than BTC will be repaid in cash, due to the volatility of altcoins and the security risks involved with transferring assets from wallet to wallet.

If approved, the initial repayments to creditors will be made shortly after.