Defunct Bitcoin exchange Mt. Gox has now released its online system for filing rehabilitation claims. The news was posted on their website after a group of Mt. Gox customers expressed their displeasure in the earlier bankruptcy case.
The customers changed the bankruptcy case to a civil rehabilitation case which they hoped would have a better income for customers who lost their funds.
The rehabilitation process provides for a chance for the corporate creditors to recover part of their funds that were lost in the 2014 Mt. Gox scandal.
Nobuaki Kobayashi, the representative of the presently defunct Bitcoin exchange, is supervising the entire process and in the news update on their website dated, he announced that the online system of filing claims was open for creditors.
Claim Processing System Opens
In a press release [PDF], Kobayashi said that the creditors had up until October 22 to file their evidence of claims. After that, they would be locked out.
The trustee would then produce a statement seeking the approving or rejecting of the claims in a court in Tokyo by January 24, 2019, where the final decision will be made.
Kobayashi however could not ascertain how fast a filed claim would be rejected or approved.
The users who have lost their login access to the Mt. Gox crypto exchange will need to send proof to an address in Tokyo selected by Mt. Gox trustees.
One major challenge that some claimants reported is that a confirmation email of if the filing was successful—it is being sent back to them and they wouldn’t tell if the process was done correctly.
The exchange’s customers are also drawing refund policies through their lawyers in the effort of wanting to be given their Bitcoin properties in the initial manner of the deposit rather than through a chosen cryptocurrency exchange.
The History of Mt. Gox
Mt. Gox was declared bankrupt in 2014 after the theft of 744,000 BTC. As a result, creditors began a process that would take years in an attempt to recover their funds which are still stuck in the exchange.
The exchange is estimated to have lost a total of approximately 850,000 BTC between 2011 and 2014 which was around $450 million in 2014 market prices.
Mt. Gox, based in Shibuya, Tokyo, was once one of the leading Bitcoin exchanges of its time—controlling up to 70 percent of the global cryptocurrency exchange market.
Their problems started in mid-2013 and even after they assured their customers that all would be well, they closed down unexpectedly in February 2014, stopping all trading and exchange processes.
They also closed down their website and filed for bankruptcy protection backed by Japanese law. As a result, the former CEO of Mt. Gox, Mark Karpeles, was taken under custody. He has now been released on bail, as of 2016.
A civil rehabilitation strategy was put in place to serve as a basis of making sure that creditors will recover their money.