99% of Creditors Approve MT Gox Rehabilitation Plan

After seven months of voting, MT Gox creditors have almost unanimously approved a rehabilitation plan according to its trustee Nobuaki Kobayashi. He said:

“At a creditors’ meeting held today at the Tokyo District Court, the draft rehabilitation plan filed by the Rehabilitation Trustee with the Tokyo District Court on February 15, 2021, was approved by a large majority of rehabilitation creditors i.e., approximately 99% of the voting rehabilitation creditors voted for the Draft Rehabilitation Plan, and approximately 83% of the total amount of voting rights was exercised in favor of the Draft Rehabilitation Plan.”

Kobayashi said the plan becomes “final and binding” in one month, after which distribution is to begin.

In a letter to creditors, the trustee said they will soon be asked to register “their bank account information and other information” on the online system to receive repayment.

$1.7 billion is to be distributed in fiat to some 10,000 creditors through payment to their bank account.

In addition 141,000 bitcoin, worth about $9.4 billion, is to be distributed either in bitcoin or in fiat depending on what each creditor chooses with estimates being most chose bitcoin as then they can do with it what they please. A further 142,000 BCH is also to be distributed.

The fiat payment will be made first with that sendable directly to one’s bank account, while where crypto payments are concerned, no detail was provided with it unclear whether they will be sent directly to each creditor’s bitcoin address or whether they will be distributed through a third party like Kraken.

Either way, creditors stand to make considerable gains eight years on after MT Gox went bankrupt due to an alleged hack.

The forced holding through nearly a decade means they stand to gain about 1,000x on their average initial investment even with the 80% haircut as only 200,000 bitcoins remained out of nearly one million that was deposited on gox.

These long term holders and OGs might even choose to keep on holding with some of that $1.7 billion potentially going back into crypto as finally the distribution is seemingly set to begin in about a month.