Mar 10, · (Reuters) - Mt. Gox, once the world’s largest bitcoin exchange, received U.S. bankruptcy protection on Monday to temporarily halt U.S. legal action . CEO Jesse Powell told CoinDesk that this week’s report is good news for creditors but that many factors, including the outcome of the police investigation and civil lawsuits involving Mt Gox, will. Mar 20, · Industry News, Retail FX, Week in Review MtGox’s trustee adds JPY billion to account balance of bankruptcy estate. The balance in the account that the trustee has secured as of March 6, , is JPY billion, i.e., an increase of approximately JPY billion from the time of the 9th creditors’ meeting.
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A Whether rehabilitation creditors receive payment in BTC or JPY is yet to be determined because this depends on the contents of the rehabilitation plan which is still not formulated or drafted. However, at this time, I will take into account that payment in BTC includes the problems of the risk of a BTC crash, security of rehabilitation creditors and requiring user registration of the exchange.
Q2: In the bankruptcy proceedings, although it was filed in the name of the company, it turned out to be an individual account. In the rehabilitation proceedings, can I file under the individual name? As a general rule, I will approve or reject a claim based on the customer information possessed by MTGOX, so if the creditors can prove that the person who made the claim is a creditor, we will approve it.
A3: I can pay rehabilitation creditors only after the rehabilitation claims are determined and the rehabilitation plan is approved by creditors. However, I would like to consider including a provision regarding interim payment in the rehabilitation plan. Q Can the trustee get support from Kraken in regard to measures against security problems for payments?
A We received support from Kraken in bankruptcy proceedings in the past, so we would like to receive support in these civil rehabilitation proceedings too. On the other hand, there are other exchanges apart from Kraken. I will consider residential housing areas and usability of creditors. Q What kind of means are there for exercising voting rights in regard to the rehabilitation plan?
A I would like to consider means in which as many creditors as possible can vote within the legally possible range. A This is also related to whether or not the repayments will be made with BTC. Q Are creditors who have not filed a claim in the bankruptcy proceedings or rehabilitation proceedings also eligible for payment? Q Are there opportunities for creditors to express their opinions on the proposed rehabilitation plan?
A This is property belonging to the rehabilitation debtor and becomes a source of payment to creditors. A This is just a problem with the method described in the table. The trustee will consider the described method.
Q Is the purpose of establishing a trust to preferentially secure the interests of monetary creditors? A Unless securing the interests of monetary creditors, bankruptcy proceedings are more advantageous for monetary creditors than civil rehabilitation proceedings. Then, since doubts arise when starting civil rehabilitation proceedings, securing the interests of monetary creditors is necessary. Q I do not want the trustee to sell the BTC.
There is also the risk of a crash, but the value of BTC may rise as well. At the end of the meeting, the trustee asked the creditors whether the BTC should be sold early or whether the trustee should continue holding the BTC and making payments in BTC. The revised basic policy for the rehabilitation plan that we are considering as of August 1, is as stated below. Andy Pag and we have made revisions based on these comments. The revisions are written in red. The rehabilitation plan outline we have prepared is merely a proposal as of this point in time.
We would like to hear your opinions, as creditors, and make revisions to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent possible. Your opinions can be submitted by commenting on this article, sending e-mails to the relevant e-mail address, or sending letters.
You can also use the comment box on the website. We look forward to hearing your opinions. Please provide your name and filing number so that we are able to identify you as a creditor. Although we requested of the court that the proceedings be progressed in accordance with the standard schedule of civil rehabilitation proceedings, the commencement order has set the deadline for submitting a civil rehabilitation plan on February 14, , which is several months behind the standard schedule.
In order to make the first payment as soon as possible, the rehabilitation plan should be simple. If the rehabilitation plan is complicated, interest adjustment among the interested parties will be necessary, and delay in the approval of the rehabilitation plan will be a concern.
Also, a complicated rehabilitation plan would be difficult to understand, and unfriendly to many creditors. We are of the opinion that it is important to make the rehabilitation plan as simple as possible, obtain approval early, and make payments to creditors as soon as possible. In addition, in order to ensure payment to creditors, we are of the opinion that the rehabilitation plan should contain a plan for implementation which is both highly certain and realistic, considering rehabilitation proceedings practices in Japan.
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. Also, if payment is to be made in cash, it will be necessary to exchange a large amount of BTC and BCH for fiat currency, which may result in the decline of the price of BTC, etc.
We think it esirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily. In addition, Mt. In this case, we think it desirable that the cash be sent to the accounts of the exchanges, as chosen by the creditors. Moreover, with regard to altcoins cryptocurrency except for BTC and BCH , the number of exchanges which deal with altcoin is limited.
It is unrealistic to repay BTC creditors in altcoin and therefore altcoin should be exchanged to cash and paid to creditors.
However, there are no exchanges which deal with all types of altcoins, there is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins.
Our plan will ensure the monetary creditors receive full payment of the amount which they are to be paid in the bankruptcy proceedings. Specifically, they will receive full repayment to the degree which has been approved in the bankruptcy proceedings.
The amount which may be paid to BTC creditors from the estate of Mt. Gox available for payment decreases by implementing this policy. Gox shall commence, assuming that the following measures are taken before the decision to commence the rehabilitation proceedings in other words, the discontinuation of the bankruptcy proceedings , that ensure the benefits of the monetary creditors in the bankruptcy proceedings of Mt.
We think it desirable that the cash be sent to the accounts of the exchanges, as chosen by the creditors. Creditors have been waiting for payment to be made for as long as 4 years since Mt. Gox was bankrupted. Needless to say, payment to creditors should be made as soon as possible. We are of the opinion that most of the assets, including approximately , BTC and , of BCH and other derivatives currently held by Mt.
Gox, should be paid to creditors at the time of the first payment. At the time of the first payment, the existence of some claims may still be disputed; therefore, it is expected that certain assets would have to be reserved at Mt. Gox until the amount of those disputed claims is fixed. In this case, we consider that those assets so reserved should be paid to creditors as additional payment.
Early payment should be realized by paying most of the assets that Mt. Additionally, the investigation and recovery of lost BTC is a concern for a lot of creditors and the additional investigation should be carried out at the expense of Mt.
Gox for the sake of uncovering the truth and increasing the estate and therefore increasing repayment to creditors. There may be an opinion that we should find a company to support Mt. However, Mt. Gox has already suspended its business, and does not require a sponsor to supplement its creditworthiness or to continue its operations.
It is not necessarily a requirement under the rehabilitation law of Japan to appoint a sponsor, although it is common, and we are of the opinion that a rehabilitation plan can be approved by the courts and creditors without a sponsor in this case.
In addition, a certain period of time would be required to find a sponsor, and a proxy fight may occur if there is more than one sponsor candidate. Such a situation may become an obstacle to the achievement of the purpose we consider most important, namely, early payment to creditors.
We do not intend to completely reject the option of finding a sponsor; however, we are of the opinion that a sponsor should not be selected except where it is apparent that such a selection would be advantageous to creditors and would not be an obstacle to early payment. For creditors, the accessibility to their trading record is indispensable for the approval or disapproval of civil rehabilitation plan.
We are going to ask the trustee to take measures such as the introduction of systems which allow us to obtain the trading records. We would like to hear your opinions, as creditors, and revise this basic policy to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent.
Please provide your name and filing number so that we can identify you as a creditor. You can also use the comment box on the website at the bottom of this page. The full payment to the monetary creditors will be made. If the rehabilitation plan is complicated, interest adjustment among interested parties will be necessary, and delay in the approval of the rehabilitation plan will be a concern. Also, a complicated rehabilitation plan is difficult to understand, and is not friendly to many creditors.
We are of the opinion that it is important to make the rehabilitation plan as simple as possible, approve it at an early timing, and make payment to creditors as soon as possible.
In addition, in order to ensure payment to creditors, we are of the opinion that the rehabilitation plan should have content of implementation which is highly certain and which is realistic, considering rehabilitation proceedings practices in Japan. Also, if payment is to be made in cash, it will be necessary to exchange a large amount of BTC, etc.
Further, as the price of BTC, etc. We are of the opinion that most of the assets, including approximately , BTC and , of BCH and other derivatives, if any, currently held by Mt. GOX shall commence, assuming that the following measures are taken before the decision to commence the rehabilitation proceedings in other words, the discontinuation of the bankruptcy proceedings , that ensure the benefits of the bankruptcy creditors especially those having monetary claims corresponding to bankruptcy claims who filed proofs of claims in the bankruptcy proceedings of MT.
To convert from the bankruptcy proceedings to the civil rehabilitation proceedings, we believe that it is the best for us to allow the full payment to the monetary creditors in the civil rehabilitation proceedings.
The total amounts of the monetary claims are much smaller than the amounts of BTC claims, so the full payment to the monetary creditors does not have significant impact on the distribution to BTC creditors. Therefore, the full payment to the monetary creditors can be implemented in the plan. At the time of the first payment, existence of some claims may still be disputed; therefore, it is expected that certain assets would have to be reserved at Mt.
Announcement, Attempted delay of Civil Rehabilitation self. Karpeles self. Did the Mt. Gox Bitcoin hacker finally reveal himself?
Will the mtgox trustee extend the July 1, rehabilitation deadline again via court order? Any news? Nothing happened since march again? Guide 32 creditor code? Future plans self. Confused on linking Mt. Bankruptcy Court to recognize its foreign bankruptcy and to assist in the Japanese proceedings by protecting its U.
Gox will seek a permanent stay of U. Hale said his order staying litigation did not apply to non-debtors, presumably Karpeles. Karpeles was named in a proposed class action filed in late February by Gregory Greene, an Illinois resident.
The lawsuit proposes to represent all U. Gox and those who had bitcoins or other currency with the exchange when it halted bitcoin withdrawals on February 7. Greene is seeking to recoup millions of dollars lost when the mtgox. Gox is also defending a lawsuit in federal court in Seattle by CoinLab Inc for breach of contract. The agents send along documents like lawsuits and other business communications addressed to the companies but keep no records themselves.
Such is the structure of Mutum Sigillum, a company Karpeles registered in Delaware. He used it to interact with a U. It was registered in Delaware by Vincent Allard, a French Canadian lawyer who for the past 13 years has been living in Dover, Delaware and, along with his daughter, running a business acting as a registered agent for Delaware corporations.