The protracted struggle of the creditors waiting to get their hands on bitcoin (BTC) holdings left in limbo since the collapse of the crypto exchange Mt. Gox could finally come to an end – with a “final and binding” resolution now legally “confirmed” by the Japanese courts.
The announcement was made in a letter from the Japanese trustee Nobuaki Kobayashi (a translated copy of which was made available online), although no exact timeframe was mentioned. Also, the document did not specify whether creditors will be paid in BTC or fiat. Kobayashi wrote:
“The trustee will request all the rehabilitation creditors to register their bank account information and other information on Mt. Gox’s online filing system in order for them to receive repayments.”
Failure to register with the “system” as outlined above, the trustee added, could lead creditors to “encounter difficulties” with their payouts.
Previously released information from the trustee has indicated that “claims will be payable in a combination” of fiat yen and “bitcoin or bitcoin cash (BCH).” Crucially, though, this will “depend on the claim” in each instance.
Kobayashi added that “the details of the specific timing, procedures and amount of such repayments” would be made clear in a further announcement – although he did not specify when this would be forthcoming.
As previously reported, the trustee has control over holdings that comprise not only BTC 141,686 (USD 8.51bn), but also bitcoin cash tokens and fiat. Analysts have warned that releasing these funds, or even a portion of them, might cause volatility in the BTC market – and could have a knock-on effect on altcoins too.
Creditors have been told that they will not receive full reimbursements, but the trustee recently stated that “approximately 99%” of those waiting for their funds have voted in favor of a deal that will see them repaid around 90% of their funds.
The exchange, once the world’s largest, was founded in 2010 but spectacularly collapsed in early 2014, marooning creditors from their coins. A long legal struggle ensued, with Kobayashi eventually appointed legal trustee. However, in the time since the collapse, BTC prices have ballooned. This has led many creditors to hope they might retrieve coins, which they bought for a relative pittance – and are now worth millions of dollars.
Analysts have previously claimed that should creditors receive BTC payments, wide-scale liquidations may not be forthcoming.
Julian Liniger, the co-founder and CEO of the bitcoin broker Relai previously told Cryptonews.com:
“[I] don‘t expect a majority of these coins to be sold, as many of the beneficiaries were into bitcoin very early on already – at least since 2014 – and therefore can be considered long-term believers and HODLers.”