Mt.Gox’s Lenders May Not Receive Compensation

Lenders of the now-defunct crypto exchange Mt.Gox are due to vote on a rehabilitation plan by Friday that will make it possible to recover millions of lost Bitcoins (BTC).

Blockstream founder Adam Back and former CEO of Mt.Gox Mark Karpeles was reminded on social media of the approaching deadline.

To obtain compensation, the plaintiffs affected by the collapse of Mt.Gox, as well as half of all lenders, must vote on the proposed rehabilitation plan by Friday.

According to Adam Beck, the court will mark the missing votes as “no”, and if more than 50% of the votes are not collected, compensation will not be paid.

Closed-Exchange CEO Mark Karpeles also reached out to former Twitter users to vote as soon as possible:

“Today, Friday, October 8, in Japan, the deadline for voting on the civil rehabilitation of MtGox expires. If you haven’t voted yet, please do so now, Friday is faster in Japan than in the US due to time zones. By the time Friday starts US time, it will be too late. ”

Mt. Gox, first launched in 2010 by programmer Jed McCaleb and then acquired by Karpeles, was one of the largest exchanges in the world during the early days of cryptocurrency. Since the 2011 hack and the exchange crash in 2014, nearly 24,000 lenders, mostly cryptocurrency holders, have been affected.

In total, 850,000 Bitcoins were lost, approximately $460 million at the time. But as of today, at the time of writing, that amount is $45.8 billion.

Japanese courts initially approved an exchange petition to begin civil rehabilitation of Mt. Gox in June 2018. This term has been extended several times. The Tokyo District Court passed the current draft rehabilitation plan in December 2020 and issued a ruling in February allowing creditors to vote on it.

According to the proposed project, former users of Mt. Gox who held cryptocurrency or fiat on the platform will be satisfied if the rehabilitation plan takes effect.

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