Victims of Mt. Gox hack which led to loss of over 800,000 BTC can now heave a sigh of relief as the exchange has announced the commencement of its civil rehabilitation process.
Mt. Gox is said to owe over 170,000 to creditors in BTC and BCH, payment of which one of Mt. Gox’s ex traders Kim Nilsson said may “completely crash the market” “due to potential mass liquidation.”
Nilsson who “spearheaded the investigation into the exchange’s bankruptcy,” said this is imminent if Mt. Gox decides to liquidate its holdings to pay creditors in fiat currencies. According Nilsson, this will likely be the result since there may not be enough demand for 170,000 BTC and BCH if all the payees decide to sell their digital assets which will lead to surplus circulation that may force the price of the assets to go down.
The payout which was restricted to individual investors now includes those affiliated to corporations, according to a recent announcement. The announcement further stated that an online tool has been released to guide claimants in the process of application. They are to submit the applications with all legal documents that validate their claims in order for them to be considered.
The tool contains questions and answers on how to file a proof of rehabilitation claim using two methods. The online method contains full instructions on how to set up a two-step authentication and file a proof of rehabilitation claim using online and supplementary online methods written in English while the offline method is written in both English and Japanese.
This has come as a relief for Mt. Gox’s creditors as they will be paid whether in fiat or crypto, considering they have waited for five years since the exchange went bankrupt. Although Nilsson believes it may crash the market, he is also looking on the bright side. He said”
“It’s possible some people would try to instantly sell the Bitcoins as soon as they receive them, but it would probably be less than 100pc of the people doing it.”
All applicants using both the online and offline methods to file proof of rehabilitation claim must submit their applications on or before 22 October 2018. Any applications submitted after this date will not be considered.
Applications will then be forwarded to Japanese courts on or before 14 February 2019 for judicial approval, after which all legitimate claimants will be paid using Mt. Gox’s 170,000 BTC and BCH accordingly.