Mt. Gox trustee submits draft rehabilitation plan

The long wait for the victims of the Mt. Gox hack might find respite in the coming days as the trustee has finally submitted the draft rehabilitation plan. According to an official announcement, Nobuaki Kobayashi has filed a draft rehabilitation plan to compensate users who fell victim to hacks suffered by the exchange. As per the announcement, the Tokyo District Cort and examiner will be reviewing the draft plan and determine whether to proceed with the rehabilitation proceedings.

One of the largest hacks in history to date, Mt. Gox was hacked on two occasions, in 2011 and 2014. It was responsible for siphoning nearly 1.35 million Bitcoin [BTC] from the depository. The exchange that was formed in 2010, had to shut its shop in 2014, which also impacted the price of Bitcoin.

The final outcome of the hack and the loss of users was to compensate them in Bitcoins and there has been deliberation over it. The users may receive their BTC this time, but the amount at which they had lost it, was much less than its +2000% appreciation since 2014.

This announcement of the filing came after the deadline for the draft of the rehabilitation plan had already been pushed three times. The previous date for submission was on 15 October 2020, which was postponed to 15 December 2020, and before which the deadline had been extended in March 2020 and April 2019.

According to the previous statement, the extension was issued at a time when Bitcoin was around $11k and the anticipation of 150,000 BTC being released to creditors was generating a buzz of significant sell pressure. Now that the asset’s value is close to $19k, the review by the Tokyo District Court and the examiner will be crucial and it is expected that the plan includes an overview of distributing the large sum to users in order to keep the impact in the market to a minimum.