The biggest creditors of Mt. Gox has chosen a payment method that will allow them to receive their recovery payout in bitcoins, rather than fiat.
About one-fifth the bankruptcy claims are represented by creditors Mt Gox Investment Fund and Bitcoinica, a now-defunct crypto-exchange.
Bitcoin Payments are preferred by the largest Gox creditors
Both entities have chosen to receive as much as 90% of their claims in Bitcoin during the September 2023 early payout, Bloomberg reported Friday, citing people who are familiar with the matter.
A quick payout means that creditors won’t have to wait nine more years for Mt. Gox will resolve all its litigation. However, waiting would provide higher payouts.
Bitcoinica and MGIF have decided to receive an earlier payout in BTC. This alleviates fears about a large bitcoin sell-off in coming months. Nobuaki Kobayashi is the bankruptcy trustee. The assets will not be liquidated on the open market to repay the repayment.
Bitcoin worth over $3.5B with Mt. Gox Trustee
Mt. Mt. The company has been buried in paperwork since its bankruptcy and is now planning how to best compensate creditors.
The trustee’s holdings as of September 2019 contained 141,686 BTC and 143,000 bitcoin cash(BCH), and also 69 billion Japanese Yuen. These amounts are currently valued at $3.4 Billion, $18 MILLION, and $512 Million, respectively.
Creditors have until March 10
Kobayashi, in July 2022, announced that creditors could claim as much as 90% of their assets in early payouts via BTC or BCH or fiat, instead of waiting five to nine more years for the company to complete its civil rehabilitation litigation.
A January report stated that creditors have until March 10th to accept an offer for a lump sum payment. All creditors who agree to the offer must register and choose a payment option prior to the deadline.