Trustee of defunct bitcoin exchange Mt. Gox intends to liquidate other cryptocurrencies besides bitcoin and Bitcoin Cash, according to the draft rehabilitation plan.
The Trustee, attorney Nobuaki Kobayashi (Nobuaki Kobayashi), shared with the creditors scheme of the draft rehabilitation plan on Tuesday before a court hearing on Wednesday. The plan is a significant step towards completion of the case, which forced creditors to wait for 2014, when the exchange Mt. Gox was hacked for 850 000 BTC.
The project specifies that creditors who filed claims in the specified currency, bitcoin (BTC) and Cash (BCH), will receive those assets in their original form or through wire transfers or BTC and BCH transactions to addresses on certain exchanges or custodians.
Meanwhile, “all other assets, all cryptocurrencies except BTC and BCH, will be eliminated in Fiat currency as possible”, – the document says.
However, cryptocurrency lenders will not be the priority in the queue to pay. First will be satisfied claims in Fiat currency, “to provide the priority of payment for interest of anyone in fiati currency.”
In addition, the draft reorganization plan, which still must be submitted and approved in court, shows that the Trustee also intends to allow creditors BTC/BCH choose to require payment in cash.
“So, a sufficient amount of cash must be provided as a source for distribution as the requirements of Fiat currency and BTC/BCH for which you want to receive payments in cash. In this regard, the Guardian may, with the permission of the court to sell all or part of BTC/BCH, which make up the assets of the debtor “,
stated in the plan.
Kobayashi noted that there is a policy “not to buy additional BTC/BCH”. Thus, the available funds BTC/BCH may be insufficient as a source for all of the requirements for those assets.
In October, the Tokyo court issued the order on extension of the term of the rehabilitation plan until March 31, 2020.
If approved, the plan could also address the long-standing question about the cryptocurrency, which fell in the hands of the guardian due to hard fork bitcoin and Bitcoin to Cash. In such fork, after the new blockchain is disconnected from the starting circuit, all digital assets of the owners are copied to the new network.
The project was not disclosed how many cryptocurrencies except BTC and BCH, the balance sheet of the Trustee. With data on the balance of guardian it is known that in March 2019 he was about BTC 686 141 and 142 846 BCH.
At that time, Kobayashi has approved the reimbursement request 802,521 BTC, 792,296 BCH and $38 1665,664 that revealed a funding gap. The total amount of assets held by Trustee, at this stage, was also unclear.
In November 2018 the hard fork split the Bitcoin Cash Bitcoin to create SV (BSV). So 142846 BCH owned by the depositors of Mt. Gox must also make an equal amount of BSV into the possession of the guardian, a figure which now stands at about $24 million a Fork of bitcoin, when the BCH in 2017 also brought about 200,000 BCH (worth $45.6 million).
During the first half of 2018 Kobayashi eliminated about 60 000 of each of BTC and BCH after the launch of the cryptocurrency market in 2017.
Cryptocurrency exchange Mt. Gox filed for bankruptcy in 2014 after the infamous break-in, which, as claimed by its representatives at the time, it lost 850 000 BTC, although it was later found about 200,000 BTC in an old wallet in exchange.
In June 2018, the Tokyo district court granted the motion to transfer the bankruptcy case in the process of civil rehabilitation, allowing the return to creditors of their cryptocurrency, not their Fiat value at the time of the crash.