Revised Rehabilitation Plan for Mt. Gox Creditors: What You Need to Know

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Recent Updates from Mt. Gox Creditors

In a recent twist in the saga of the infamous Mt. Gox Bitcoin exchange, lawyers representing a group of creditors announced an updated civil rehabilitation plan. This fresh approach, as declared on the creditors’ website on August 2, 2018, comes in response to earlier feedback, including insights from the Mt. Gox Legal creditor group.

Details of the Rehabilitation Plan

  • Repayment in Bitcoin and Bitcoin Cash: Creditors can expect to be reimbursed in BTC and BCH, with funds directed back to current accounts on crypto exchanges, or to newly created ones, as preferred by the creditors.
  • Cash Reimbursements: The exchange reportedly has a stash of leftover cash acquired through the sale of BTC and BCH, which could also be disbursed to BTC creditors post monetary creditor repayments.
  • Consideration of Altcoin Repayments: Attempting to reimburse creditors in altcoins was identified as “unrealistic,” primarily due to the varied availability of coins on different exchanges.

Price Stability and the Sale of Altcoins

The lawyers cautioned against the sale of altcoins by the trustee, warning that such an action could trigger a sudden price drop and security dilemmas. They emphasized the need for a careful approach to avoid chaos in the altcoin market. After all, nobody wants to be responsible for a crypto market meltdown, right?

Upcoming Payments

According to the update, creditors are set to receive 160,000 BTC and 168,000 BCH at the time of the first payment, projected for May or June 2019. Yes, that’s right; some creditors may finally see a glimmer of hope after years of anticipation!

Important Deadlines and Timeline

Mark February 14, 2019, in your calendar, because it’s the new deadline for submitting the civil rehabilitation plan—a few months later than initially planned, but hey, better late than never!

This rehabilitation effort marks the journey of Mt. Gox, which kicked off a legal battle for recovery in June 2018, four years after an infamous hack that whisked away a staggering $473 million—a record-breaker at the time!

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