The once bankrupt crypto exchange may now start operating again after a Japanese court ordered for its civil rehabilitation, so ending the bankruptcy process. They say:
“At 5:00 p.m. on June 22, 2018, the Tokyo District Court issued an order of the commencement of civil rehabilitation proceedings for MTGOX. As a result, the previously ongoing bankruptcy proceedings were stayed.
In addition, simultaneously with the order of the commencement of civil rehabilitation proceedings, an administration order was issued by the Tokyo District Court, and I have been appointed Civil Rehabilitation Trustee.”
That paves the way for the once biggest crypto exchange to start operating again at least for the purpose of redistributing the remaining 165,000 bitcoin and an equal amount of bitcoin cash.
Yet how exactly the matter will proceed now is to be determined by the creditors/debtors, with the report stating:
“In civil rehabilitation proceedings, in principle, the civil rehabilitation debtor retains the power and authority to administer and dispose of its assets.”
A creditors’ meeting is to be held on the 26th of September 2018 when they may decide how to redistribute the funds. Crucially, the report says:
“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.”
According to blockchain data analysis, the sale of half a billion dollars worth of bitcoin and bitcoin cash by the MT Gox bankruptcy trustee significantly affected the price.
That downwards pressure between December and March was from only 35,000 bitcoins. There were worries therefore the trustee might have to sell the remaining 165,000 bitcoins as according to Japanese law creditors had to be paid in fiat.
Now that the court has ordered civil rehabilitation, however, creditors can be paid in bitcoin, so alleviating any worries of further downwards price pressure from MT Gox.
Yet it may also mean, if the exchange starts operating again, that the goxing might never end, but distribution does not have to be through the MT Gox exchange.
Kraken facilitated creditors claims through an agreement of sorts with the trustee back in 2014-15, so the cryptos could potentially be redistributed through Kraken now 4 years on since bankruptcy.