The Mt.Gox debacle, originating from the devastating 800,000 Bitcoin hack in 2014, continues, with recent court documents showing that creditors may finally get the money and Bitcoin they deserve.
Civil Rehabilitation Process Finally Begins
Mt.Gox is undoubtedly the cryptocurrency exchange with the most amount of notoriety, suffering the first notable Bitcoin hack, losing over 800,000 Bitcoin. Since the hack, legal battles have raged between the exchange and its creditors, the thousands of users of the exchange who lost Bitcoin in the hack.
Kobayashi became the topic of discussion in the cryptocurrency community, as he sold thousands of BTC on exchanges, causing substantial fluctuations in price. Some attributed a large majority of 2018’s downward price movement to his sell orders, reportedly selling over 30,000 BTC over the span of six months.
Creditors To Receive Repayment In Q1 Of 2019
Those affected by the Mt.Gox hack will have until October 22, 2018, to make any claims over the Bitcoin stash which Kobayashi holds. Once compiled and verified, the civil rehabilitation requests will be submitted to Japanese courts, by February 14, 2019, at the latest.
CNBC acknowledged the Bitcoin debt repayment in their Fast Money segment, affectionately called Bitcoin’s ‘Funeral’. Brian Kelly, Founder and CEO of the BKCM cryptocurrency and blockchain invest firm, gave three reasons why BTC “isn’t dead yet.” One of these reasons being Mt.Gox’s well-received move to pay off its creditors, despite fears of a large selloff.
Kelly noted that the distribution of the Bitcoin owed will not happen until “Q1 of 2019”, adding that the creditors will not be able to sell their Bitcoin until then.