Creditors in Mt Gox update recovery plan to get funds back

Posted 03 August, 2018

The creditors of the dead exchange Mt. Gox are developing the recovery plan willing to get back their funds under the June court order.

Last November, the lawyers acting for Mt. Gox creditors filed the petition for the exchange recovery after the bankruptcy and civil rehabilitation, and the updated proposal was released yesterday.

According to the reports, the full document was unveiled in late June, following the approval of the last-year petition for the recovery by the court in Tokyo. Notably, the creditors stated that it would reasonable to make payments for bitcoin deposits in cryptos rather than fiats.

"We think it desirable that the BTC and BCH be sent to exchanges in which many creditors have accounts or can open accounts easily," the lawyers stated in the updated proposal.

Considering the first payment, they believe "most of the assets, including approximately 166,000 BTC and 168,000 of BCH and other derivatives currently held by Mt. Gox, should be paid to creditors at the time of the first payment".

At present, the funds held by the exchange exceed $1 billion. The first payments are expected to be made in May-June 2019 in case of the positive determination on the proposal. The lawyers are waiting for extra comments before the official approval of the plan for further submitting to the court. 

Besides, it was proposed that other cryptos held by the platform might be liquidated and paid in fiats to the creditors citing the exchange rate fluctuations.

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