In what is quite possibly the lowest point in Bitcoins history, it looks as though the ongoing Mt. Gox saga is finally coming to an end, and it looks as though it may well be a positive end. After a Japanese court ruled against the Mt. Gox bankrupcty proceedings, potentially paving the return of over $1 billion worth of bitcoins to victims.
Shin Fukuoka, a leading attorney at Japan’s Nishimura & Asahi law firm explained how “this is the creditors’ victory” and that “enormous assets…will be returned to creditors of Mt. Gox”.
Mt.Gox biggest ever bitcoin theft
Mt.Gox was once the largest bitcoin exchange in the world, until their eventual collapse back in 2014. It was reported at the time that some 850,000 bitcoins went missing, worth around $473 million at the time. These bitcoins were supposedly lost according to former Mt. Gox CEO Mark Karpelès.
However, Karpelèshas since reported that he found some of these bitcoins. These recovered bitcoins have been held in the company’s estate since he reported this whilst an ongoing legal battle has pursued.
The Mt. Gox scandal was the biggest ever bitcoin theft to date, and hopefully remains that way.
Mt. Gox court ruling
After the court ruling ended the Mt. Gox bankrupcty, they have opted to start civil rehabilitation. Japan’s bankruptcy laws state:
Bankruptcy proceedings can be commenced in respect of a debtor when either: The debtor is generally, and on a continuing basis, unable to pay its debts as they become due. The debtor’s total liabilities exceed the total value of its assets, if the debtor is not a legal person
Mt. Gox’s remaining estate contains around 170,000 bitcoins and bitcoin cash. Which currently is worth around $1.2 billion, although it had been almost 4 times that amount back in December/January. This means because the total estate is now worth more than their liabilities at the time they filed for bankruptcy, due to the bitcoin price increasing. The court have ruled that Mt. Gox are no longer bankrupt.
As part of civil rehabilitation, the assets held by Mt. Gox will be able to be returned to any debtors and and former customers. Although the actual number of bitcoins can be returned at least the face value at the time they were stolen can be returned.
Mt. Gox still maintain that the 850,000 stolen bitcoins were the result of hackers and to this date still plead their innocence in the case. All we know for sure is the saga is finally coming to an end, and maybe this could spark a bull run. Let us know your thoughts on social media.
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