Tokoyo District Court allows Mt. Gox to stop selling BTC and BCH for the time being. Hopefully, in the coming months, Mt. Gox will start paying back their creditors, preferably with BTC and BCH.
The Tokyo District Court has accepted Mt. Gox’s motion to end their bankruptcy. This ruling comes after months of selling thousands of bitcoin back in December, March, and May. Hopefully soon Mt. Gox will start paying its creditors back after the hack years ago.
A New York-based lawyer, Daniel Kelman, the person in charge of forming a rehab group is not optimistic of a victory yet until “creditors actually receive such payment.” The hope is that they will end up distributing the BTC and BCH back.
Mt. Gox has a civil rehabilitation which allows them to come up with their own plans instead of following strict bankruptcy proceedings. Although there is more flexibility, the plan still needs to be approved at the creditors’ meeting and by the court but unfortunately will still have Mt. Gox’s best interest in mind.
“To that end, a rehabilitation plan to certainly and promptly realize creditors’ rights should be prepared, approved at the creditors’ meeting, and approved by the court. A rehabilitation plan, which provides creditors rights in the proceedings, will be primarily prepared by the trustee; therefore, creditors’ opinions will not always be reflected to the rehabilitation plan prepared by the trustee.” Daniel Kelman said.
It still remains to see if and when Mt. Gox will actually start paying their creditors back and more importantly if they will give them the fiat value of their BTC at the time of the hack, or if they will distribute the BTC and BCH. Regardless of what happens, it is good news that they will not be selling for the time being.