On 25th September, Mt. Gox, a cryptocurrency exchange platform, popular for its hack in the cryptocurrency space announced the ‘Measures to Secure Interests of Bankruptcy Creditors’ as a part of the civil rehabilitation proceedings.
Recently, as per the instructions of Tokyo District Court, Mt. Gox commenced the civil rehabilitation filing. Succeeding which, Mt. Gox is required to present the civil rehabilitation plan to the court in the month of February 2019.
The new document released by Mt. Gox has underlined the measures taken by the trustee, Nobuaki Kobayashi with the intention to pay off the creditors. It stated that the Kobayashi sold a portion of Bitcoin [BTC] and Bitcoin Cash [BHC] on 7th March 2018.
The trustee had sold 24,658.00762 BTC and 25,331.00761 BCH in the month of March 2017. This is more than $158 million worth of Bitcoin and $10 million worth of Bitcoin Cash.
This was speculated to be one of the factors for Bitcoin crashing in the market in the month of March. According to CoinMarketCap, Bitcoin was trading at $10000 at the beginning of March and closed at $8000 at the end of the month.
Ever since then, the coin has not breached the $10000 mark and is known as one of the biggest bloodbaths for the year. In addition, some market speculators even believe that the December 2017 crash was also the effect of Mt. Gox sell-off.
Moreover, the report stated that the BTC and BCH were sold post the approval from the Tokyo District Court and the examiner. Succeeding which, Nobuaki Kobayashi’s account had an approximate of 70059 million JPY [more than $6 billion]. In addition, the trustee had an agreement with Sumitomo Mitsui Banking.
The sale which occurred in the month of March 2018 could have occurred because the claims were registered in Japanese Yen because of the Japanese bankruptcy law. As per the law, the creditors would be paid in JPY instead of cryptocurrencies and once the claims are settled, the rest of the cryptocurrencies would be distributed to the shareholders as a part of the liquidation.
However, this year, the creditors filed for a civil rehabilitation under which they would be paid back in cryptocurrencies instead of Japanese Yen. Moreover, according to the rehabilitation plan, all the assets should be distributed to the creditors and not the shareholders including the cash held by the trustee.
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