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Mt. Gox rehabilitation update: Users could get a portion of their Bitcoins [BTC] back

Febin Jose



Mt Gox rehabilitation update: All users could get a portion of their Bitcoins [BTC] back
Source: Pixabay

Bitcoin [BTC] has seen a fair share of controversies since its inception, both with regards to its technology and adoption. Before Bitcoin shocked the financial market by hitting the $20,000-mark almost two years ago, Mt. Gox played a crucial role in involuntarily orchestrating a major turn of events, leading to the eventual downfall of the king coin in 2018.

The erstwhile exchange’s civil rehabilitation proceedings started on March 20, 2019, when the Tokyo District Court informed the public about the status of approval or disapproval of exchange-related and non-exchange-related rehabilitation claims. Now, in a new update, its seems that Mt. Gox is planning to return at least a portion of the Bitcoins held by all users.

In an email dated April 22, 2019, sent to all Mt. Gox users, the exchange revealed that the “self-approved rehabilitation claim” became active following the withdrawal of objections by creditors to the said claims. The statement read,

“As a result, the approval of your self-approved rehabilitation claim has become effective, and you no longer need to file an application for claim assessment. Even if you have received a PDF form of the application from the Rehabilitation Trustee, you do not have to submit the application.”

The email also lists Mt. Gox as the debtor and Nobuaki Kobayashi, Attorney-at-law, as the rehabilitation trustee.

Screenshot of the mail from Mt Gox to all users

Screenshot of the mail from Mt Gox to all users

This clarification effectively means that any user who held Bitcoin on the exchange when it went offline would get a portion of their funds back, even if they did not file any claim in their name. Though the exact amount is unknown, this comes as good news to many investors who kept their distance from the legal proceedings as they will also get a part of their funds back now.

A Reddit user, DerEwige, commented,

“Just to clarify. That does not mean it will happen soon. Nor do I know how much of the money is left. All it means is: If you had money on MtGox you have made legal claims on that money even if you did not do so yourself and are now a creditor in the bankruptcy case of MtGox. Once the case is closed you will (probably) receive your share.”

Another Reddit user said,

“You’re basically just selling your claim to the whole btc to another company for a fraction of the total.”

After losing 850,000 Bitcoins worth $450 million (at that time) in one of the biggest hacks in the history of the cryptoverse, Mt Gox was declared bankrupt in 2014. Though it lost roughly 7% of all Bitcoins in circulation at that time, the exchange has been making an effort to pay back creditors following multiple lawsuits.

However, there hadn’t been any update on the same over the past few weeks. Andy Pag, a former administrator of Mt. Gox Legal, attributed the delay in the processing of the claims to CoinLab and its mammoth claim of $16 billion.

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Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.


SEC delays VanEck Bitcoin ETF decision days after delaying Bitwise proposed rule change





SEC delays VanEck Bitcoin ETF decision days after delaying the Bitwise proposed rule change
Source: Unsplash

The Securities and Commission Exchange [SEC] has yet again delayed another Bitcoin ETF. This time around, the commission has decided to delay the VanEck Soldix Bitcoin ETF, one of the most awaited exchange-traded funds in the cryptocurrency community.

In the document released today, the exchange has asked for more comments on the proposed rule change and has also asked for further information on queries related to the exchange-traded fund. The commission stated that it has received 25 comments on the proposed rule change so far.  It stated,

“On January 30, 2019, Cboe BZX Exchange, Inc. […] filed with the Securities and Exchange Commission, […] a proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust […] The proposed rule change was published for comment in the Federal Register on February 20, 2019.”

It further stated

“On March 29, 2019, pursuant to Section 19(b)(2) of the Act, the commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”

Notably, the main concerns of the commission continue to be market manipulation and the measure taken by the platform to protect its investors. The commission is currently seeking comments on 14 queries pertaining to the VanEck Bitcoin ETF.

This includes the views of the ‘commenters’ on whether the exchange has entered “into a surveillance-sharing agreement with a regulated market of significant size related to bitcoin?”, the relationship between the Bitcoin futures markets and the Bitcoin spot market, with the focus being price formation, the relationship between the Bitcoin futures market and the proposed Bitcoin ETF, and the commenters’ views “of the Exchange’s assertions that bitcoin is arguably less susceptible to manipulation than other commodities that underlie ETPs”.

Gabor Gurbacs, Director of Digital Assets Strategy with VanEck said on Twitter,

“The VanEck SolidX #Bitcoin #ETF decision has been postponed by the SEC. We continue the hard work towards better-regulated, safer and more liquid digital assets markets. Bitcoin is too big to ignore. Vires in numeris!”

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