Almost a decade after the initial hack, thousands of Mt. Gox exchange creditors will now be able to receive compensation for the billions of dollars they lost during that time. The aforementioned hack resulted in the loss of around 850,000 bitcoins between 2011 and 2014, which drove the cryptocurrency exchange into bankruptcy in 2014.
A trustee of the now-defunct Japanese stock exchange, Nobuaki Kobayashi, announced on Wednesday that a recovery plan originally filed with the Tokyo District Court in February had been approved by around 99% of the affected creditors.
He added that “approximately 83% of the total voting rights were in favor of the draft rehabilitation plan”.
Once the plan is in place, it will allow victims to receive at least partial compensation for the cryptocurrencies they lost to the hack. the vote on the proposal took place between May 31st and October 8th. For its acceptance, at least 50% of the consent of the entitled creditors was required.
The plan will be completed on November 20, after which the redevelopment plan will be “final and binding”. Creditors could then receive remuneration by registering their bank details in the exchange’s web portal.
At the time of the hack, cryptocurrencies were still in the making than they are today. Mt. Gox was one of the largest exchanges in the world, handling almost 70% of all Bitcoin transactions worldwide. However, the hack resulted in nearly 24,000 creditors losing their cryptocurrency funds, which at the time of writing were worth approximately $ 56 billion.
While the users had lost almost 850,000 bitcoins, of which 200,000 tokens have now been “found”, Kobayashi will allegedly only be able to refund them with 15,000 BTC.
A request for the exchange to begin civil rehabilitation was originally approved by Japanese courts in 2018. However, this has been repeatedly postponed for several reasons. The current draft plan was finally approved by the Tokyo District Court in December 2020. In February of this year, it also issued an order that allows creditors to vote on the plan.
In a similar incident, Bitfinex, which had replaced Mt. Gox as the leading Bitcoin exchange, suffered a security flaw in 2016. Bitfinex creditors lost 119,756 Bitcoins, worth around $ 72 million at the time. However, they were all compensated for their losses over the next year.