A draft document has been made available to Mt. Gox creditors ahead of the bi-annual meeting tomorrow. The document sets forth the next steps in the process for the Bitcoin tied up in Mt. Gox, which will—eventually—be heading back to creditors.
Creditors can find the document here. It is an outline of a plan that will be submitted but could change in the future.
The document mainly concerns how the Bitcoin will be repaid to creditors. It explains that the creditors will be able to choose if they want to receive fiat money or a mixture of fiat money and Bitcoin, including Bitcoin Cash—but no other cryptocurrencies. If the creditor does not indicate either way, then it will be paid in fiat.
The Mt. Gox funds have been held up in legal limbo ever since the hack. Image: Shutterstock
“The Trustee’s policy is, subject to the satisfaction of certain requirements, to make distributions to BTC creditors in BTC and distributions to BCH creditors in BCH,” it states.
For those who had balances in fiat money that wasn’t Japanese Yen, the amounts “will be valued at the yen conversion rate on the day preceding the date of the commencement order of the rehabilitation proceedings.”
The money will be distributed to three priority groups in stages.
“The Trustee’s policy is that the priority payment to secure the interest of the fiat currency claims and small sum payments (the two payments are referred to collectively as the “Base Payments”) are to be paid first,” it states. First to receive restitution will be those who lost large amounts of Bitcoin in Mt. Gox.
The second wave of repayments will be given to those who lost amounts up to $2,000. “The Trustee plans to make small sum payments of up to 200,000 yen for each single rehabilitation creditor,” the document states.
Third will be pro rata payments. These may be divided into several payments depending on the claim.
Payments made in fiat will need to be sent to bank accounts. “In principle, payment of fiat currency claims will be made by receiving bank account information from each rehabilitation creditor and remitting payments to such accounts from the Trustee’s bank account,” it states. Otherwise payment can be made in yen at the Debtor’s head office.
Bitcoin and Bitcoin Cash amounts will be paid to crypto exchanges. Other cryptocurrencies will be converted to fiat.
Mt. Gox was once the biggest Bitcoin exchange. By 2014, it was handling more than 70% of global Bitcoin trading volume. It closed down in February 2014 after suffering an extended hack of 650,000 Bitcoin—worth $4.3 billion today.
Fortress Investment Group is offering $1,300 per Bitcoin for those who lost money in Mt. Gox, worth roughly 90% of the value of the Bitcoin at the time. But for those who are waiting to get their money back, tomorrow will be another step forward.