A report from Bloomberg suggests that creditors of defunct cryptocurrency exchange Mt. Gox will have an opportunity to recoup some of their lost Bitcoin before any other legal claims are settled.
The publication revealed that a deal has been reached with Mt. Gox bankruptcy trustee Nobuaki Kobayashi and MGIFLP that will give creditors the option to recoup up to 90 percent of the remaining Bitcoin that is currently held in bankruptcy proceedings.
It’s understood that CoinLab, which has an outstanding $16 bln claim against Mt. Gox in the bankruptcy, disclosed this week.
Creditors will have the final say in the approval of the plan through a simple vote. Nevertheless investors that lost out in the exchange’s infamous bankruptcy are not obligated to take the early payment that is being offered and can wait for various lawsuits to be settled.
Mt. Gox revisited
The Mt. Gox debacle is still one of the most infamous exchange incidents in the history of cryptocurrencies. In 2013, Mt. Gox was the biggest Bitcoin exchange by trading volume before over 850,000 BTC belonging to users was stolen.
Over the past seven years, a lot of the BTC that was stolen and moved has been found but the funds have been locked in by various lawsuits.
According to the Bloomberg report, the current deal will be paid to investors from the trust. However there is a limit to the amount of Bitcoin that creditors are eligible to receive. It’s understood that for each Bitcoin that was locked up in the bankruptcy, the trust only has 0.23 BTC to give back.
