The infamous cryptocurrency exchange Mt. Gox based in Tokyo, Japan has already been making a lot of breaking news. According to some experts, the hack which saw Mt. Gox lose more than $473 million in 2014 has affected a lot of things in the crypto space – just like the continuous sell-offs which occurred in 2018 (potentially leading to the downfall of cryptocurrencies).
However, these are only rumors. What’s certain is that My. Gox may finally recover its funds. According to the Tokyo District Court’s decision on Friday, there is a petition that will move the company out of criminal bankruptcy and into civil rehabilitation.
The Mt. Gox theft remains one of the largest in the history until the Coincheck hack occurred in January 2018. If Mt. Gox remained in criminal bankruptcy after it, the creditors would likely have been paid in fiat currency at the exchange rate in 2014 (when Bitcoin was worth $480).
However, due to the high appreciation of Bitcoin in the meantime, the price now amounts to hundreds of millions of dollars. As of right now, creditors petitioned the court to allow Mt. Gox to enter the civil rehabilitation which will be a legal process that provides more leeway in the way creditors can be compensated.
Now that the court in Japan has approved the petition, creditors may be refunded in cryptocurrency. However, their compensation will still depend on the rehabilitation plan established during subsequent legal proceedings.
Currently, the wallets belonging to the Mt. Gox estate hold 137,891 BTC which is worth more than $870 million at press time.
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