Defunct Bitcoin exchange Mt. Gox has entered civil rehabilitation proceedings, according to a statement from Mt. Gox trustee Nobuaki Kobayashi.
Published today, the statement said the Mt. Gox previous bankruptcy proceedings had been stayed and a civil rehabilitation had commenced following a June 22 order from the Tokyo District Court. This is a big win for creditors of the defunct exchange, who filed a petition for the commencement of civil rehabilitation proceedings with the court in November.
“The power and authority to administer and dispose of MTGOX’s assets is still vested exclusively in me, and I will implement the civil rehabilitation proceedings, including the administration of MTGOX’s assets and the investigation of claims, subject to the Tokyo District Court’s supervision,” Kobayashi wrote in the document.
This could also turn out to be a positive development for the Bitcoin price, at last in the short turn. As explained by Kobayashi, one of the differences between bankruptcy proceedings and civil rehabilitation proceedings is that in the former “non-monetary claims are converted into monetary claims based on the valuation as at the time of the commencement of bankruptcy proceedings”, while in the latter such claims “are not converted”.
“Therefore, in the civil rehabilitation proceedings in this matter, claims seeking a refund of bitcoins ('Bitcoin Claims') will also not be converted into monetary claims after the commencement of the civil rehabilitation proceedings,” the statement says.
There have been suspicions that the large Bitcoin sell-offs Kobayashi conducted in Q4 last year, fuelled major drops in the cryptocurrency’s price. With the start of the civil rehabilitation proceedings it is likely that this will no longer be an issue. However, it should be expected that some creditors will sell their Bitcoins when they receive them next year.
In today’s trading, the Bitcoin price stood at $6,161.98, as of 17:30 BST. The digital coin has lost 8.4% of its value in the past 24 hours.