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Victims of Mt. Gox hack soon to be recovered with their lost Bitcoins

Pooja
Pooja

Apparently, there is good news for victims of the Mt. Gox hack, one of the world’s biggest hack in bitcoin history. As posted on official site of exchange, the Tokyo district court has approved to the put a hold on bankruptcy proceedings and process the civil rehabilitation request. In short, $1 billion worth of cryptocurrency to be returned back to the company’s former customers.

Mt Gox, which was one of the largest bitcoin exchange platforms witnessed complete closure due to 2014 hack. The company had lost 850,000 Bitcoins valued almost up to $473 million worth cryptocurrency. Eventually, the company was able to recover 200,000 Bitcoins and ever since then stuck in Tokyo-based company’s bankruptcy estate.

After this incident creditors were not sure if there is any chance to get refunds or money back. But the situation turned out to be different when the court suspended bankruptcy proceedings.

As per bankruptcy proceedings, non-monetary claims such as Bitcoin are converted into traditional money based on the value of the asset at the start of the proceedings. Meaning that creditors would not be able to benefit from the refund, considering huge difference in market price of $483 in 2014 and $6200 as the current price. But document clearly states that creditors will be reimbursed with bitcoins at the current market price $6200.

This certainly is a victory for Creditors of now-defunct Mt Gox. Furthermore, the former CEO of company Karpeles mentioned in a press statement that,

“I hope entering civil rehabilitation will be for the best of everyone. As I said previously I am not expecting any kind of profit from this and only hope everyone will be repaid as much as possible as soon as possible”

Indeed this will be a bonanza for all those creditors and investors who are plotting to buy those claims, as it would reap almost up to 9 to 10 times of initial investment.

However, this offer comes with its own caveat.  As published on fortune news

Mt. Gox trustee has reopened a claim-filing process requiring creditors to submit proof of what they are owed under the rehabilitation, and must also formulate a new plan for the distribution of assets, which is due Feb. 14, 2019. It could be a year from now or longer before that plan becomes final and creditors receive their Bitcoins.

What do you think of this article? Let us know your thoughts in the comments below.

mtgox

Pooja

Lead writer at Wolfcone.com and avid reader. My interests lie in everything and anything related to technology. I firmly believe cryptocurrency has the power to revolutionize world economy and blockc