People who lost money in the infamous Bitcoin (BTC) exchange, Mt. Gox are in for a big pay cheque after a landmark ruling in Court. Once touted as the largest cryptocurrency exchange, Mt. Gox was forced to file for bankruptcy in 2014, after suffering a devastating a hack attack that resulted in the loss of 800,000 Bitcoins.
Legal battles have been the order of the day ever since, pitying the exchange and its creditors as well as the thousands of users that used it at its glory years. A court ruling by a Tokyo District Court has now made it clear that creditors, as well as former customers of the platform, are entitled to receive their claims in Bitcoin rather than fiat equivalent, at the time of the bankruptcy filing.
The Tokyo District Court has already halted Mt. Gox?s Bankruptcy proceedings paving the way for the rehabilitation process. Being paid in Bitcoin is a tall order given that at the time the exchange was filling for bankruptcy, the cryptocurrency was trading at about $485. It has since skyrocketed to record highs of $20,000 before pulling back to the current $6,000 mark.
Bumper Pay Out
Mt. Gox owed the creditors $414 million when it imploded based on the value of 166, 344 bitcoins and 168,177 Bitcoin cash. Taking into consideration the current prices of the two cryptocurrencies, the exchange is set to pay out more than $1.2 billion. The creditors could have earned much more had the ruling come in December When Bitcoin was trading at record highs of close to the $20,000 mark.
Former customers still have a long way to go before they can get their dues from the exchange. The payout will also depend on the value of Bitcoin. For starters, all affected persons will have to file a proof of rehabilitation claims.
Creditors who sold off their claims to third parties may end up with nothing, on the payout coming into effect. Persons who have forgotten their passwords could also struggle to make claims, as such, credentials are needed to make a claim.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
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