The Tokyo District Court has permitted Mt. Gox to start its civil rehabilitation. The exchange’s ongoing bankruptcy proceeds have been paused, and the process is expected to commence in the early months of next year, according to a Friday release from one of its trustees.
Mt Gox Stops Bitcoin Dumping
Mt. Gox creditors could see their funds recuperated from the now defunct bitcoin exchange in the next year. The Tokyo District Court halted the bankruptcy process and moved on forwards with the civil rehabilitation process.
Mt. Gox’ website published the document which revealed the provisional agenda on how their civil rehabilitation is expected to ensue. The Mt. Gox bankruptcy claims-filing system has also been momentarily put off.
Mt. Gox Trustee, Nobuaki Kobayashi, declared that he won’t be selling any more bitcoin — at least not in the nearest future until the claimants are compensated in bitcoin sometime early to mid-2019.
He implies in the posted document that creditors may receive larger sums of money than those who initially wanted to be refunded in fiat currency when the exchange started the bankruptcy proceedings.
“In bankruptcy proceedings, non-monetary claims are converted into monetary claims based on the valuation as at the time of the commencement of bankruptcy proceedings. In contrast, in civil rehabilitation proceedings, non-monetary claims are not converted into monetary claims at the time of commencement of the civil rehabilitation proceedings. 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,” stated Kobayashi.
As far as precise dates for upcoming selling and allocation of Bitcoin (and its forks) are concerned, the document says the following:
“At present, nothing has been determined regarding the sale of Bitcoin and cryptocurrencies split from Bitcoin (collectively, “Bitcoin, etc.”) in the future.”
The creditors will have to refile their claims by October 2018. Nonetheless, since Mt. Gox. still owns 137,890.96 BTC (almost $880 million USD) or 0.807 percent of the total circulating supply of bitcoin, any distribution of these funds could have an impact on the cryptocurrency markets over the next year.
Whale Influence On the Crypto Market
Kobayashi was nicknamed ‘Mt. Gox Bitcoin Whale’ because he managed to sell $400 million in Bitcoin (BTC) and Bitcoin Cash (BCH) between December 2017 and February 2018. Because of this, he was accused of causing the market crash from that period, though the trustee refuted such claims.
Kobayashi restated this in today’s announcement.
“As in sales from December 2017 to February 2018, upon consultation with cryptocurrency 6 transaction experts, Bitcoin and Bitcoin Cash were sold in a manner that had no effect on market price and not by ordinary sale on an exchange, while ensuring the security of the transaction to the extent possible,” read the document.
Still, traders closely monitored the Mt. Gox supply to try to predict possible selloffs and calculate when they should act on the market.
The next time the creditors’ will meet to report how the civil rehabilitation process is developing, will be on September 26, 2018.