The Tokyo District Court ordered to stop the bankruptcy process and start the civil rehabilitation process on the Petition filed by some of the creditors against MTGOX with the Tokyo District Court on November 24, 2017. This brings them one step closer to receive more than $450 per bitcoin lost.
Court orders in favour of creditors
The petition was heard, and at 5:00 p.m. on June 22, 2018, the Tokyo District Court issued an order of the commencement of civil rehabilitation proceedings for Mt. Gox. As a result, the previously ongoing bankruptcy proceedings have stayed. In addition, simultaneously with the order of the commencement of civil rehabilitation proceedings, an administration order was issued by the Tokyo District Court. By passing this order, Mt. Gox’s representative trustee has lost the right to administer and dispose of Mt. Gox’s assets.
The schedule going forward for the Civil Rehabilitation Proceedings has been laid out and is as follows
- Meeting for reporting the status of property and submission deadline for a report under Article 125 of the Civil Rehabilitation Act: September 26, 2018
- Deadline for Filing proof of rehabilitation claims: October 22, 2018
- Submission deadline for inventory of assets and balance sheets: October 27, 2018
- Submission deadline for the statement of approval or disapproval: January 24, 2019
- Period to examine Proofs of rehabilitation claims: From January 31, 2019, to February 7, 2019
- Submission deadline for proposed rehabilitation plan: February 14, 2019
(*This schedule is subject to change as the civil rehabilitation proceedings progress.)
As per the schedule, the creditors will also be required to refile their claims by October 2018. Nevertheless, since Mt. Gox. still controls 137,890.96 BTC (almost $880 million USD) or 0.807 percent of all Bitcoins currently in existence, any distribution of these funds could have an effect on cryptocurrency markets over the next year.
Watching the ‘BITCOIN WHALE’- Mt Gox Trustee
Nobuaki Kobayashi has been dubbed the ‘Mt. Gox Bitcoin Whale’ for selling $400 million in Bitcoin (BTC) and Bitcoin Cash (BCH) from December 2017 to February 2018. For this reason, he was blamed for triggering the market downturn during the given period, though the trustee has denied having an impact on bitcoin price.
In the update document, he has mentioned
“ As in sales from December 2017 to February 2018, upon consultation with cryptocurrency transaction experts, Bitcoin and Bitcoin Cash were sold in a manner that had no effect on market price and not by ordinary sale on an exchange, while ensuring the security of the transaction to the extent possible”
Kobayashi had come with a similar statement in ay 2018 and has refrained from explaining the method for sale to quote him
“he method of sale of BTC and BCH was approved by the court as well — I would like to refrain from explaining the details of the method of sale; otherwise the future sale of BTC and BCH could be hindered — At present, nothing has been determined regarding the sale of BTC and BCH in the future”
With approx $1.9 billion worth of digital assets, the constitutes the Mt. Gox Stash, remaining under supervision, crypto investors and traders have a close eye on how and when they are offloaded in the market.
Will the Stash Sale have an impact on cryptocurrency prices over next year? Will there be no more Mt Gox’s in the future? Do let us know your views on the same.