$1.3 Billion Worth Of BTC Locked Up By Mt. Gox Won’t Move Till Next Year
Aug 04, 2018
Mt. Gox are back in the headlines, this time as a result of a decision made by authorities that will see money owed by Mt. Gox, held until summer 2019.
Just to recap, Mt. Gox are due to credit the accounts of customers who had funds stolen during the Mt. Gox hack. This came after a court ruling that made Mt. Gox liable for the return of assets to their customers. As the case continues via a rehabilitation plan, it now seems that Mt. Gox are unable to pay until this time next year, as, according to Bitcoinist, the civil rehabilitation plan states:
“Mt. Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt. Gox should be distributed to creditors and not to shareholders.”
Interestingly, the plan does dictate that payments will be made in Bitcoin and Bitcoin Cash, instead of FIAT:
“In general, we consider it appropriate to make payments to creditors who had been depositing BTC (BTC creditors) with Mt. Gox, in BTC and BCH instead of cash. In this case, we think it desirable that the cash be sent to the accounts of the exchanges, as chosen by the creditors.”
Bitcoin and Bitcoin Cash have been chosen carefully, as refunding through altcoins could be seen to manipulate the markets, which could cause widespread issues. The plan states:
“There is a possibility that the sale of the altcoins by the trustee would cause a sudden fall in the price of altcoins and security problems may arise if the trustee moves the altcoins. Therefore, the trustee should proceed with the sale of altcoins with careful consideration of these matters.”
See the full article for yourself, here.
This does mark some progress for those investors who are still out of pocket as a result of the Mt. Gox hack, though I imagine it is very frustrating for these individuals who will now have to wait another year before they see any compensation.
The payment of Bitcoin could be very interesting though as within these refunds, the value will be subject to volatility. So, (for example) Mt. Gox could re-pay a creditor a sum of $50 worth of BTC, but then that same $50.00 could be worth $100.00 the week after. Likewise the opposite effect could occur, which is of course likely given that this time next year, it now seems that Mt. Gox are going to shift $1.3 billion worth of crypto all at once.
We’ll keep our eyes on this one as the story gains traction.
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