Mt. Gox investors finally close to being reimbursed from the cryptocurrency exchange’s failures

Mt. Gox investors finally close to being reimbursed from the cryptocurrency exchange’s failures

A reimbursement plan has finally been approved, but distribution of funds is still on hold

Although it has been a slow and sometimes tedious process, it has finally been announced that creditors of the now-defunct cryptocurrency exchange Mt. Gox have overwhelmingly given the necessary approval for a rehabilitation plan to be carried out and thus be compensated for billions in Bitcoin (BTC) lost some time ago.

Nobuaki Kobayashi, a trustee of Mt. Gox, announced midweek that around 99% of creditors who were affected by the collapse of the Japan-based cryptocurrency exchange gave the go-ahead to the draft rehabilitation plan originally filed with the Tokyo District Court earlier this year. In addition to this overwhelming approval, he also stated that plaintiffs representing approximately 83% of the total amount of voting rights also said yes to the plan.

The vote took place exactly two weeks ago where thousands of Mt. Gox users whose losses are estimated to be in the billions of dollars had the opportunity to decide whether they wanted the plan to go through or not. Kobayashi made it clear that although the approval is a done deal, creditors will have to wait at least another month for the distribution of assets to begin, as it is necessary for the rehabilitation plan to become “final and binding.” Additionally, he said that this group of people should also expect to register their bank account details on the website soon in order to receive remuneration.

Mt. Gox was considered one of the most relevant and popular exchanges in the world during the early days of cryptocurrency. However, its glory days started to fade after a hack took place ten years ago, not to mention the subsequent collapse of the exchange in early 2014. As a result, around 24,000 creditors, mainly those holding cryptocurrencies, were affected. The events caused 850,000 BTC to be lost, which used to be $460 million at the time, but now, with inflation, has risen to $56 billion. Reports indicate that Kobayashi only has 150,000 BTC to reimburse users, about $9.12 billion.

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