Finally, after 2 years of frustration, overly complicated claims procedures, lawsuits, jailed executives, and lots of frustration the trustee in the Mt Gox bankruptcy has completed the review and determination of all claims.

Even more impressive is the fact that through the Kraken exchange, ex-users of the now imploded Mt Gox may actually see claims paid soon. These coming in bitcoin for those who elected (and you still have time to elect this option) to receive their claims this way and others will see regular compensation in fiat currency of their jurisdiction (USD, EUR, YEN, etc...).

A recent announcement from the trustee overseeing the bankruptcy, attorney Nobuaki Kobayashi, stated:

...all bankruptcy claims have been accepted or rejected, and, henceforth, I wish to proceed to the distribution process as soon as possible. However, the detailed schedule thereof will inevitably be affected by each creditor’s response to the acceptance or rejection of his or her claim, etc. Therefore, at present, the possibility of carrying out a distribution and the timing and method thereof, etc. have not yet been determined. I will continue to consider whether, in the case where a distribution is possible, a distribution will be made by way of distributing BTC. 

The same announcement also stated the amount being managed by the bankruptcy is 202,185.35450043 bitcoin (XBT) or about 105.4 million USD at press time ($521.10).  Which is a little troubling if you do the math and read the numbers.

Breakdown of Distribution

The amount of claims received came to ¥263,519,268,303,371  (2.4 trillion USD) of which most was rejected allowing ¥45,609,593,503 ($413.8 million USD) accepted claims to be distributed to from. To be blunt, there's not enough money to cover the accepted claims. Not even half, it's more along the lines of a fourth. 

There's over 400 million in claims and only a bit over 100 million to spread around. This means if you were owed $100, you'll be lucky to get $25 bucks.

That sucks. 

It's still better than nothing and that's assuming that is what is going to be distributed, it may well be much less of an amount. It's far too late for this to solve any of the problems it caused in the beginning and those who had their entire retirement fund in when they were Gox'd shouldn't have had it all there to begin with, but at least you'll have something back. 

Others who got squeezed to the point it caused immediate financial crisis have long since moved along and that's simply because the legal system and process thereof just sucks and is very slow. It's what makes "private permissioned ledgers" undesirable, this is how long it takes to fix things when you rely on nothing more than paper contracts and the legal process. 

Regardless, this is good news. Long awaited news and the only thing better will be the day the check is in the mail.

The full Mt Gox report is available here.

Report by dinbits
Image by staff

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