Creditors of the defunct Japanese crypto exchange Mt. Gox can start filing their civil rehabilitation claims, as the online filing system that has to facilitate the process is now operational, industry website Coindesk has reported. An offline method has also been provided for creditors who have lost online login access to Mt. Gox, the publication further informed.
The news, announced yesterday by Mt. Gox trustee Nobuaki Kobayashi, follows a Tokyo district court decision, which in June stayed the previous bankruptcy proceedings and moved the exchange to a civil rehabilitation process. The move was seen as a win for Mt. Gox creditors, who had filed a petition for the process to be changed in November.
The development was also positive for Bitcoin, as it reduced likelihood of Kobayashi conducting large Bitcoin sell-offs to reimburse creditors. As the trustee explained at the time, 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”. This essentially means that creditors can now receive actual Bitcoins rather than a cash payout equal to the value of their holdings as of early 2014.
On Thursday Kobayashi said that creditors had until October 22 to submit proofs of their claims.
"The planned deadline for the Rehabilitation Trustee to submit a statement of approval or rejection to the court is January 24, 2019, but, at the current point in time, a definite date has not been determined," the trustee said in another document, as quoted by Coindesk.
Mt. Gox was once the largest digital currency exchange in the world, but it was forced to declare bankruptcy in early 2014, after hackers stole more than 744,000 Bitcoins.