'Enormous Assets' to be Returned in Mt. Gox Debacle

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Mt. Gox, once the largest cryptocurrency exchange and handling approximately 70% of all bitcoin transactions from its facilities in Japan, collapsed in April 2014 then filed for bankruptcy.  On Friday the Tokyo District Court ordered commencement of civil rehabilitation proceedings, and as such “enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors.”

“This is the first time in Japan legal history,” attorney for the creditors, Daniel Kelman, stated, “that a liquidation has ever converted into a rehabilitation —it’s always the other way around after a rehab fails. This sort of also made legal history as well.”

For those who lost BTC in the Gox affair but haven’t yet filed a claim, Mr. Kelman muses “there might be another chance to file in rehab. Stay tuned. We are trying to avoid having to redo the whole claims process, which will cost money, take time and be at the expense of the creditors who timely filed. But things will still take a while as there is the Coinlab case to grapple with still.”

Mt. Gox had claimed that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time.

- Aaron Goldstein, Gambling911.com

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