Mt.Gox Creditors Approve Latest rehabilitation Plan, Set to receive $9B
Mt.Gox was one of the most scandalous cases in the crypto sector. The exchange was once the largest cryptocurrency exchange that accounted for nearly three-quarters of the entire Bitcoin transactions. However, it suffered a major hack in 2014, causing the exchange to be shut down.
The investors who had their holdings with the exchange suffered major losses and have been waiting for a rehabilitation plan to be approved to receive compensation. It now seems that these investors will get back their lost funds, which are now worth billions.
Rehabilitation Plan Approved by Creditors
The trustee who handles the Mt.Gox case and is responsible for compensating the victims has stated that an updated rehabilitation plan has been approved by the largest percentage of creditors. These creditors are expected to receive around $9 billion worth of Bitcoin before the end of the year.
Mt.Gox has been defunct since the hack happened. The Rehabilitation Trustee has been the body that has been actively working and looking for a way that these creditors can receive compensation. The trustee has issued several rehabilitation plans that have unsuccessfully failed to receive support from the majority of the creditors.
However, the trustee has stated that the recent plan has been approved by 99% of the rehabilitation creditors who voted. The letter dated October 20 states that “Depending on the situation, the confirmation order is expected to become final and binding in approximately one month from today.”
Receive Major Gains
After the approved rehabilitation plan becomes binding in a month, the creditors will be required to provide their banking details on Mt. Gox’s online filing system to be reimbursed.
Given the immense value that Bitcoin has gained over the past seven years, the investors are expected to make major profits. The $9 billion being reimbursed to these victims has been calculated at the current prices of Bitcoin.
However, news of this reimbursement has created fear across the market that a price correction could happen. Given that these investors have waited for the money over the past seven years, there is a high chance that they could decide to sell, which could trigger selling pressure across the market and lead to major price dips.
Currently, Bitcoin is trading at around $63,400. This week, it reached all-time highs of around $67K due to the approval of a Bitcoin futures exchange-traded fund in the US.
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