CR plan outline proposal by MtGox Legal:
https://www.mtgoxlegal.com/wp-content/uploads/2018/07/CR-plan-outline-July-17.pdf
Topic: MtGox withdrawal delays [Gathering] - page 4. (Read 908457 times)
From the MtGox site: http://www.mtgox.com/img/pdf/20180719_announcement.pdf
Some creditors have inquired about the timing for filing proofs of rehabilitation claim in
the Civil Rehabilitation Proceedings of MtGox Co., Ltd. We are currently using our best efforts to
build the system for filing proofs of rehabilitation claim. We plan to release such system this
August. Please kindly wait for a while. Thank you for your kind understanding.
Some creditors have inquired about the timing for filing proofs of rehabilitation claim in
the Civil Rehabilitation Proceedings of MtGox Co., Ltd. We are currently using our best efforts to
build the system for filing proofs of rehabilitation claim. We plan to release such system this
August. Please kindly wait for a while. Thank you for your kind understanding.
I am not sure if I understand the BTC part.
I appreciate that they seem to be aiming to pay BTC back in BTC, but do they have enough BTC for this?
My understanding was that they had lost about 850k btc, and they had recovered a bit more than 200k btc. Since currently they have only about 166k btc, then that means that they used about 34k btc to cash out and to pay various expenses..
Anyhow, if someone had 10 BTC in MTGOX, then would they end up receiving around 20% of their BTC (which is 166/850)? That would mean that such hypothetical person would receive 2 BTC? Or am I missing something?
Since BTC has appreciated so greatly, I do agree that the most fair thing is to pay back in BTC, and also if they merely received 20% back, they would still be doing much better off than they were at the time of the loss, especially as we may recall there is some discrepencies regarding the value of the coins too at the time of the loss since during that early 2014 time frame up until February 2014, the BTC price dropped from $1,200-ish down to $190-ish..., yet even at the time of the GOX closure announcement, other exchanges were dropping but still decently maintaining BTC prices in around a $600 price arena.
The 166k BTC allegedly still in MtGox possession are probably just 138k BTC, based on latest transfers, so the return ratio is going to be 17% max, plus forks.
This BTC distribution will be on top of the approved bankruptcy claims, paid in fiat, plus interest. Or at least that's the current plan of the CR lawyers teams.
During the last days of MtGox operation, price fell not to 190$, but to 100$, and twice.
I am not sure if I understand the BTC part.
I appreciate that they seem to be aiming to pay BTC back in BTC, but do they have enough BTC for this?
My understanding was that they had lost about 850k btc, and they had recovered a bit more than 200k btc. Since currently they have only about 166k btc, then that means that they used about 34k btc to cash out and to pay various expenses..
Anyhow, if someone had 10 BTC in MTGOX, then would they end up receiving around 20% of their BTC (which is 166/850)? That would mean that such hypothetical person would receive 2 BTC? Or am I missing something?
Since BTC has appreciated so greatly, I do agree that the most fair thing is to pay back in BTC, and also if they merely received 20% back, they would still be doing much better off than they were at the time of the loss, especially as we may recall there is some discrepencies regarding the value of the coins too at the time of the loss since during that early 2014 time frame up until February 2014, the BTC price dropped from $1,200-ish down to $190-ish..., yet even at the time of the GOX closure announcement, other exchanges were dropping but still decently maintaining BTC prices in around a $600 price arena.
From MtGox creditors, https://mtgox-creditors.com/
Basic Policy for Preparing a Rehabilitation Plan (as of June 29, 2018)
We are currently considering the basic policy for the rehabilitation plan that is as stated below. The rehabilitation plan outline we have prepared is merely a proposal as of this point in time. We would like to hear your opinions, as creditors, and revise this basic policy to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent.
Your opinions are accepted by making comments on this article, sending e-mails to “mtgoxforcreditors at-mark gmail.com” (please change “at-mark” to @ when you send email), ) or sending letters. We look forward to hearing your opinions. Please provide your name and filing number so that we can identify you as a creditor. You can also use the comment box on the website at the bottom of this page.
[Basic Policy for the Rehabilitation Plan]
1. The rehabilitation plan should be simple and the implementation thereof should have high certainty.
2. No distribution will be made to shareholders.
3. Distribution of assets to creditors will be made in kind, meaning for creditor bitcoin (BTC) claims, payment will be made in BTC and its derivatives (including but not limited BCH).
4. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan (according to the standard schedule, approximately 5 months after the commencement of rehabilitation proceedings).
5. The full payment to the monetary creditors will be made.
6. If there are any residual assets, or new assets are found, additional payment will be made.
7. No sponsor will be selected in principle, except where it is apparent that such selection is advantageous to creditors.
[Concept of the Basic Policy]
1. The rehabilitation plan should be simple and the implementation thereof should have high certainty.
In order to make the first payment as soon as possible, the rehabilitation plan should be simple. If the rehabilitation plan is complicated, interest adjustment among interested parties will be necessary, and delay in the approval of the rehabilitation plan will be a concern. Also, a complicated rehabilitation plan is difficult to understand, and is not friendly to many creditors. We are of the opinion that it is important to make the rehabilitation plan as simple as possible, approve it at an early timing, and make payment to creditors as soon as possible.
In addition, in order to ensure payment to creditors, we are of the opinion that the rehabilitation plan should have content of implementation which is highly certain and which is realistic, considering rehabilitation proceedings practices in Japan.
2. No distribution will be made to shareholders.
Mt.Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt.Gox should be distributed to creditors and not to shareholders.
3. Payment for bitcoins (BTC) will be made in BTC and its derivatives (BCH, etc.).
We consider it appropriate to make payment to creditors who had been depositing BTC (BTC creditors) with Mt.Gox, in BTC and its derivatives (BCH, etc.), instead of cash.
This is because making payment to BTC creditors in BTC, etc. is the most simple and efficient way and transaction costs such as bank fees can be minimized (this is the very advantage of BTC). Also, if payment is to be made in cash, it will be necessary to exchange a large amount of BTC, etc. for fiat currency, which may result in decline of the price of BTC, etc. Further, as the price of BTC, etc. fluctuates rapidly, it is difficult to determine when to sell BTC, etc.
4. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan.
Creditors have been waiting for payment to be made for as long as 4 years since Mt.Gox was bankrupted. Needless to say, payment to creditors should be made as soon as possible.
We are of the opinion that most of the assets, including approximately 166,000 BTC and 168,000 of BCH and other derivatives, if any, currently held by Mt.Gox, should be paid to creditors at the time of the first payment.
5．The full payment to the monetary creditors will be made.
In the Examiner’s report, the Examiner considers that the civil rehabilitation of MT.GOX shall commence, assuming that the following measures are taken before the decision to commence the rehabilitation proceedings (in other words, the discontinuation of the bankruptcy proceedings), that ensure the benefits of the bankruptcy creditors (especially those having monetary claims corresponding to bankruptcy claims) who filed proofs of claims in the bankruptcy proceedings of MT.GOX.
To convert from the bankruptcy proceedings to the civil rehabilitation proceedings, we believe that it is the best for us to allow the full payment to the monetary creditors in the civil rehabilitation proceedings. The total amounts of the monetary claims are much smaller than the amounts of BTC claims, so the full payment to the monetary creditors does not have significant impact on the distribution to BTC creditors. Therefore, the full payment to the monetary creditors can be implemented in the plan.
6. If there are any residual assets, or new assets are found, additional payment will be made.
At the time of the first payment, existence of some claims may still be disputed; therefore, it is expected that certain assets would have to be reserved at Mt.Gox until the amount of those disputed claims is fixed. In such case, we consider that those assets so reserved should be paid to creditors as additional payment.
Conversely, we think that payment should not be reserved until all of the assets/debts are fixed. Early payment should be realized by paying most of the assets that Mt.Gox has at hand to creditors as the first payment, as soon as possible, and then paying those assets/debts that are yet to be fixed, as additional payment.
Also, with regard to additional payment, we think that a scheme should be considered to realize additional payment at an early timing, under which additional payment should be made by fixing the amounts of the non-fixed assets/debts by transferring them to third parties, instead of waiting for all of such amounts to be fixed.
7. No sponsor will be selected in principle except where it is apparent that such selection is advantageous to creditors.
There may be an opinion that we should find a company that supports financially and commercially Mt.Gox (“sponsor”). However, Mt.Gox has already suspended its business, and it is not in a situation requiring a sponsor to supplement its creditworthiness or to continue its operations. It is not necessarily a requirement under the rehabilitation law in Japan to appoint a sponsor, although it is common, and we are of the opinion that a rehabilitation plan can be approved by the courts and creditors without a sponsor in this case. In addition, a certain period of time would be required to find a sponsor, and a proxy fight may occur if there is more than one sponsor candidate. Such a situation may become an obstacle to the achievement of our purpose which we consider the most important, namely, early payment to creditors. We do not intend to completely deny finding a sponsor; however, we are of the opinion that a sponsor should not be selected except where it is apparent that such selection is advantageous to creditors and will not be an obstacle to early payment.
Basic Policy for Preparing a Rehabilitation Plan (as of June 29, 2018)
We are currently considering the basic policy for the rehabilitation plan that is as stated below. The rehabilitation plan outline we have prepared is merely a proposal as of this point in time. We would like to hear your opinions, as creditors, and revise this basic policy to prepare a rehabilitation plan which reflects creditor opinions to the fullest extent.
Your opinions are accepted by making comments on this article, sending e-mails to “mtgoxforcreditors at-mark gmail.com” (please change “at-mark” to @ when you send email), ) or sending letters. We look forward to hearing your opinions. Please provide your name and filing number so that we can identify you as a creditor. You can also use the comment box on the website at the bottom of this page.
[Basic Policy for the Rehabilitation Plan]
1. The rehabilitation plan should be simple and the implementation thereof should have high certainty.
2. No distribution will be made to shareholders.
3. Distribution of assets to creditors will be made in kind, meaning for creditor bitcoin (BTC) claims, payment will be made in BTC and its derivatives (including but not limited BCH).
4. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan (according to the standard schedule, approximately 5 months after the commencement of rehabilitation proceedings).
5. The full payment to the monetary creditors will be made.
6. If there are any residual assets, or new assets are found, additional payment will be made.
7. No sponsor will be selected in principle, except where it is apparent that such selection is advantageous to creditors.
[Concept of the Basic Policy]
1. The rehabilitation plan should be simple and the implementation thereof should have high certainty.
In order to make the first payment as soon as possible, the rehabilitation plan should be simple. If the rehabilitation plan is complicated, interest adjustment among interested parties will be necessary, and delay in the approval of the rehabilitation plan will be a concern. Also, a complicated rehabilitation plan is difficult to understand, and is not friendly to many creditors. We are of the opinion that it is important to make the rehabilitation plan as simple as possible, approve it at an early timing, and make payment to creditors as soon as possible.
In addition, in order to ensure payment to creditors, we are of the opinion that the rehabilitation plan should have content of implementation which is highly certain and which is realistic, considering rehabilitation proceedings practices in Japan.
2. No distribution will be made to shareholders.
Mt.Gox is not capable of returning all BTC deposited by creditors. Accordingly, we consider that all assets of Mt.Gox should be distributed to creditors and not to shareholders.
3. Payment for bitcoins (BTC) will be made in BTC and its derivatives (BCH, etc.).
We consider it appropriate to make payment to creditors who had been depositing BTC (BTC creditors) with Mt.Gox, in BTC and its derivatives (BCH, etc.), instead of cash.
This is because making payment to BTC creditors in BTC, etc. is the most simple and efficient way and transaction costs such as bank fees can be minimized (this is the very advantage of BTC). Also, if payment is to be made in cash, it will be necessary to exchange a large amount of BTC, etc. for fiat currency, which may result in decline of the price of BTC, etc. Further, as the price of BTC, etc. fluctuates rapidly, it is difficult to determine when to sell BTC, etc.
4. First payment to creditors will be made promptly after the approval and confirmation of the rehabilitation plan.
Creditors have been waiting for payment to be made for as long as 4 years since Mt.Gox was bankrupted. Needless to say, payment to creditors should be made as soon as possible.
We are of the opinion that most of the assets, including approximately 166,000 BTC and 168,000 of BCH and other derivatives, if any, currently held by Mt.Gox, should be paid to creditors at the time of the first payment.
5．The full payment to the monetary creditors will be made.
In the Examiner’s report, the Examiner considers that the civil rehabilitation of MT.GOX shall commence, assuming that the following measures are taken before the decision to commence the rehabilitation proceedings (in other words, the discontinuation of the bankruptcy proceedings), that ensure the benefits of the bankruptcy creditors (especially those having monetary claims corresponding to bankruptcy claims) who filed proofs of claims in the bankruptcy proceedings of MT.GOX.
To convert from the bankruptcy proceedings to the civil rehabilitation proceedings, we believe that it is the best for us to allow the full payment to the monetary creditors in the civil rehabilitation proceedings. The total amounts of the monetary claims are much smaller than the amounts of BTC claims, so the full payment to the monetary creditors does not have significant impact on the distribution to BTC creditors. Therefore, the full payment to the monetary creditors can be implemented in the plan.
6. If there are any residual assets, or new assets are found, additional payment will be made.
At the time of the first payment, existence of some claims may still be disputed; therefore, it is expected that certain assets would have to be reserved at Mt.Gox until the amount of those disputed claims is fixed. In such case, we consider that those assets so reserved should be paid to creditors as additional payment.
Conversely, we think that payment should not be reserved until all of the assets/debts are fixed. Early payment should be realized by paying most of the assets that Mt.Gox has at hand to creditors as the first payment, as soon as possible, and then paying those assets/debts that are yet to be fixed, as additional payment.
Also, with regard to additional payment, we think that a scheme should be considered to realize additional payment at an early timing, under which additional payment should be made by fixing the amounts of the non-fixed assets/debts by transferring them to third parties, instead of waiting for all of such amounts to be fixed.
7. No sponsor will be selected in principle except where it is apparent that such selection is advantageous to creditors.
There may be an opinion that we should find a company that supports financially and commercially Mt.Gox (“sponsor”). However, Mt.Gox has already suspended its business, and it is not in a situation requiring a sponsor to supplement its creditworthiness or to continue its operations. It is not necessarily a requirement under the rehabilitation law in Japan to appoint a sponsor, although it is common, and we are of the opinion that a rehabilitation plan can be approved by the courts and creditors without a sponsor in this case. In addition, a certain period of time would be required to find a sponsor, and a proxy fight may occur if there is more than one sponsor candidate. Such a situation may become an obstacle to the achievement of our purpose which we consider the most important, namely, early payment to creditors. We do not intend to completely deny finding a sponsor; however, we are of the opinion that a sponsor should not be selected except where it is apparent that such selection is advantageous to creditors and will not be an obstacle to early payment.
Does this still keep the option to receive Bitcoin back instead of fiat currency? i don't understand the email they send me.
Even if you had only BTC in your last balance (and approved claim), some of the compensation will be in fiat, besides the ~15% of BTC.
That's because Kobayashi sold about 10x more BTC than it was needed to compensate the fiat creditors.
Does this still keep the option to receive Bitcoin back instead of fiat currency? i don't understand the email they send me.
yes. check the wording here https://www.mtgox.com/img/pdf/20180622_announcement_en.pdf
'In bankruptcy proceedings, non-monetary claims are converted into monetary
claims based on the valuation as at the time of the commencement of
bankruptcy proceedings. In contrast, in civil rehabilitation proceedings,
non-monetary claims are not converted into monetary claims at the time of
commencement of the civil rehabilitation proceedings. Therefore, in the civil
rehabilitation proceedings in this matter, claims seeking a refund of Bitcoins
(“Bitcoin Claims”) will also not be converted into monetary claims after the
commencement of the civil rehabilitation proceedings. '
you'll be given an option by the looks of things.
Does this still keep the option to receive Bitcoin back instead of fiat currency? i don't understand the email they send me.
congratulations to anyone who got caught up in this. it must be a very good feeling to know that something will come out of it eventually. i hope everyone hung in there.
i read elsewhere that civil rehabilitation is a super rare option, but the whole thing was a super rare case.
i read elsewhere that civil rehabilitation is a super rare option, but the whole thing was a super rare case.
This is good news for all the MtGox creditors, Civil Rehabilitation is approved.
It might take another year but we should get back our fair share.
It might take another year but we should get back our fair share.
Commencement of Civil Rehabilitation Proceedings of Mt.Gox ( from https://mtgox-creditors.com/ )
https://www.mtgox.com/img/pdf/20180622_announcement_en.pdf
Today, on June 22, 2018, the Tokyo District Court ordered commencement of civil rehabilitation proceedings regarding Mt. Gox. Accordingly, enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors of Mt.Gox in civil rehabilitation proceedings. This is the creditors’ victory. Please see “https://www.mtgox.com/ ” for the trustee’s website.
However, this victory has not been realized yet. The victory will come to creditors when Mt. Gox makes payment to creditors and creditors actually receive such payment.
To that end, a rehabilitation plan to certainly and promptly realize creditors’ rights should be prepared, approved at the creditors’ meeting, and approved by the court.
A rehabilitation plan, which provides creditors rights in the proceedings, will be primarily prepared by the trustee; therefore, creditors’ opinions will not always be reflected to the rehabilitation plan prepared by the trustee.
We would like to reflect creditors’ opinions to the rehabilitation plan by proposing our opinions or plan to the trustee. Under Japanese civil rehabilitation act, a creditor is entitled to submit his or her plan if the court permits.
Therefore, we are now working to prepare for the separate article entitled, “Outline of Our Rehabilitation Plan.” We would like to hear creditors’ opinions on the outline. Creditors will send us e-mails to “mtgoxforcreditors at-mark gmail.com” (please change “at-mark” to @ when you send email), or letters.
https://www.mtgox.com/img/pdf/20180622_announcement_en.pdf
Today, on June 22, 2018, the Tokyo District Court ordered commencement of civil rehabilitation proceedings regarding Mt. Gox. Accordingly, enormous assets, which were to be distributed to Mt. Gox’s shareholders under the bankruptcy proceedings, will be returned to creditors of Mt.Gox in civil rehabilitation proceedings. This is the creditors’ victory. Please see “https://www.mtgox.com/ ” for the trustee’s website.
However, this victory has not been realized yet. The victory will come to creditors when Mt. Gox makes payment to creditors and creditors actually receive such payment.
To that end, a rehabilitation plan to certainly and promptly realize creditors’ rights should be prepared, approved at the creditors’ meeting, and approved by the court.
A rehabilitation plan, which provides creditors rights in the proceedings, will be primarily prepared by the trustee; therefore, creditors’ opinions will not always be reflected to the rehabilitation plan prepared by the trustee.
We would like to reflect creditors’ opinions to the rehabilitation plan by proposing our opinions or plan to the trustee. Under Japanese civil rehabilitation act, a creditor is entitled to submit his or her plan if the court permits.
Therefore, we are now working to prepare for the separate article entitled, “Outline of Our Rehabilitation Plan.” We would like to hear creditors’ opinions on the outline. Creditors will send us e-mails to “mtgoxforcreditors at-mark gmail.com” (please change “at-mark” to @ when you send email), or letters.
Good news, that at least things are happening, thanks for the update, Tzupy. As far as "third party bespoke crypto payment platform" does this refer to Kracken? At one time they were going to be the official distributor of Gox BTC.
An update from MtGox Legal creditors:
https://www.mtgoxlegal.com/2018/05/18/update-18-mar-18/
We originally calculated that the sale of the 16k coins that moved should be enough to cover all assets. While it’s regrettable that the court/trustee considers they need cash to cover all the assets before moving forward, we concluded there’s nothing we can do about it. We looked at ways to challenge it legally but there was nothing we could practically do.
The further movement of 8k coins caused some alarm as some people thought it implied that the Trustee was on track to liquidate everything. Our lawyer’s view is that that is not the case, but that we should recalculate to allow for delay payment interest. The bankruptcy statute allows for 5 or 6% pa. So the trustee will need at least 20% more cash than we had originally considered. Again it’s disappointing that so many coins need to be sold, and we can only hope the trustee is getting a good price for them.
He has said that he is selling them in a way that will not affect the market. This suggests he’s selling them to a holder, such as an EFT type institution. We will find out in the course of time.
Our lawyer has met with the trustee and has had conversations with his team. He’s asked me not to divulge the details he shared with me, but the information he gave me left me confident that CR will be approved. The Trustee has to arrange Gox’s finances in such a way that meet the conditions set out by Ito, and the court can then approve CR. There seems to be willing from all parties involved, but it will take some more time, and probably the sale of more bitcoins.
As well as stockpiling the requisite amount of cash, the Trustee also has to establish a Trust vehicle to hold the assets that flow into CR. Once this has done, the conditions for approving CR should be met, and the court can then give the green light. The suggestion is that all creditors vote on being paid through the bankruptcy, (better for fiat claims) or allowing your claim to roll over into the Trust, which will then receive the assets left over after fiat claims have been settled, and distribute them under a CR plan (through an exchange or directly with the help of a third party bespoke crypto payment platform and bank transfers).
https://www.mtgoxlegal.com/2018/05/18/update-18-mar-18/
We originally calculated that the sale of the 16k coins that moved should be enough to cover all assets. While it’s regrettable that the court/trustee considers they need cash to cover all the assets before moving forward, we concluded there’s nothing we can do about it. We looked at ways to challenge it legally but there was nothing we could practically do.
The further movement of 8k coins caused some alarm as some people thought it implied that the Trustee was on track to liquidate everything. Our lawyer’s view is that that is not the case, but that we should recalculate to allow for delay payment interest. The bankruptcy statute allows for 5 or 6% pa. So the trustee will need at least 20% more cash than we had originally considered. Again it’s disappointing that so many coins need to be sold, and we can only hope the trustee is getting a good price for them.
He has said that he is selling them in a way that will not affect the market. This suggests he’s selling them to a holder, such as an EFT type institution. We will find out in the course of time.
Our lawyer has met with the trustee and has had conversations with his team. He’s asked me not to divulge the details he shared with me, but the information he gave me left me confident that CR will be approved. The Trustee has to arrange Gox’s finances in such a way that meet the conditions set out by Ito, and the court can then approve CR. There seems to be willing from all parties involved, but it will take some more time, and probably the sale of more bitcoins.
As well as stockpiling the requisite amount of cash, the Trustee also has to establish a Trust vehicle to hold the assets that flow into CR. Once this has done, the conditions for approving CR should be met, and the court can then give the green light. The suggestion is that all creditors vote on being paid through the bankruptcy, (better for fiat claims) or allowing your claim to roll over into the Trust, which will then receive the assets left over after fiat claims have been settled, and distribute them under a CR plan (through an exchange or directly with the help of a third party bespoke crypto payment platform and bank transfers).
Wow that's pretty amazing to be honest. That 1.3 billion dollars could actually be shared across all holders who lost it sounds like. Mark would likely still receive a decent amount, because exchanges take their fees in BTC, so his/MtGox's account would likely have a decent share of the money to claim back.
Let's be honest, he's probably doing this so the Yakuza don't make him disappear
Let's be honest, he's probably doing this so the Yakuza don't make him disappear
Karpeles wrote on Reddit that he has no MtGox claim, so even if there were about 100k BTC from fees, he doesn't expect any financial reward from Civil Rehabilitation (I specifically asked him some time ago).
I suspect he would like CR to succeed, currently available funds be distributed, and then later he might recover some of the stolen BTC from Vinnik.
Wow that's pretty amazing to be honest. That 1.3 billion dollars could actually be shared across all holders who lost it sounds like. Mark would likely still receive a decent amount, because exchanges take their fees in BTC, so his/MtGox's account would likely have a decent share of the money to claim back.
Let's be honest, he's probably doing this so the Yakuza don't make him disappear
Let's be honest, he's probably doing this so the Yakuza don't make him disappear
In case you missed it:
https://www.reddit.com/r/btc/comments/89o171/im_mark_karpel%C3%A8s_exceo_of_bankrupt_mtgox_ask_me/
https://www.reddit.com/r/btc/comments/89o171/im_mark_karpel%C3%A8s_exceo_of_bankrupt_mtgox_ask_me/
Quote
Dear community,
Many of you know or remember me, especially recently since the MtGox bankruptcy has been allegedly linked with Bitcoin price drops in December 2017 to February 2018. Since taking over the most active Bitcoin exchange in 2011, I ran MtGox until filing for civil rehabilitation on February 28th 2014 (which became bankruptcy less than 2 months later) because a large amount of Bitcoins went missing. Since then, four years have passed, and MtGox is still in bankruptcy today. I’ve been arrested, released under bail after a little less than one year, and am now trying to assist MtGox getting into civil rehabilitation.
I did my best trying to grow the ecosystem by running the biggest exchange at the time. It had big problems but still managed to hang in there. For a while. A quite long while, even, while the rest of the ecosystem caught up. At the end of the day, the methods I chose to try to get MtGox out of its trouble ended up being insufficient, insufficiently executed, or plain wrong.
I know I didn't handle the last, stressful days of the outdrawn and painful Gox collapse very well. I can only be humble about that in hindsight. Once again, I’m sorry.
Japanese bankruptcy law has a particularly nasty outcome here, and I want to address this up front. As creditors claims were registered, those claims were registered in the valuation of Japanese Yen on the bankruptcy date. That's the only way Japanese bankruptcy law can work (most bankruptcy laws around the world operate this way for that matter). This means that the claims can be paid back in full, and there will still be over 160,000 bitcoin and bitcoin cash in assets in the Gox estate. The way bankruptcy law works is that if there are any assets remaining after the creditors have been paid in full, then those assets are distributed to shareholders as part of the liquidation.
That's the only way any bankruptcy law can reasonably work. And yet, in this case, it produces an egregiously distasteful outcome in that the shareholders of MtGox would walk away with the value of over 160,000 bitcoin as a result of what happened.
I don't want this. I don't want this billion dollars. From day one I never expected to receive anything from this bankruptcy. The fact that today this is a possibility is an aberration and I believe it is my responsibility to make sure it doesn’t happen. One of the ways to do this would be civil rehabilitation, and as it seems most creditors agree with this, I am doing my best to help make it happen. I do not want to become instantly rich. I do not ask for forgiveness. I just want to see this end as soon as possible with everyone receiving their share of what they had on MtGox so everyone, myself included, can get some closure.
I’m an engineer at heart. I want to build things. I like seeing what I build being useful, and people being happy using what I build. My drive, from day one, has been to push the limits of what is technically possible, and this is the main reason I liked and have been involved with Bitcoin in the first place. When I took over MtGox, I never imagined things would end this way and I am forever sorry for everything that’s taken place and all the effect it had on everyone involved.
Hopefully, I can make what I’ve learned in this experience useful to the community as a whole, so there can at least be something positive in the end.
Ask me anything you like.
Many of you know or remember me, especially recently since the MtGox bankruptcy has been allegedly linked with Bitcoin price drops in December 2017 to February 2018. Since taking over the most active Bitcoin exchange in 2011, I ran MtGox until filing for civil rehabilitation on February 28th 2014 (which became bankruptcy less than 2 months later) because a large amount of Bitcoins went missing. Since then, four years have passed, and MtGox is still in bankruptcy today. I’ve been arrested, released under bail after a little less than one year, and am now trying to assist MtGox getting into civil rehabilitation.
I did my best trying to grow the ecosystem by running the biggest exchange at the time. It had big problems but still managed to hang in there. For a while. A quite long while, even, while the rest of the ecosystem caught up. At the end of the day, the methods I chose to try to get MtGox out of its trouble ended up being insufficient, insufficiently executed, or plain wrong.
I know I didn't handle the last, stressful days of the outdrawn and painful Gox collapse very well. I can only be humble about that in hindsight. Once again, I’m sorry.
Japanese bankruptcy law has a particularly nasty outcome here, and I want to address this up front. As creditors claims were registered, those claims were registered in the valuation of Japanese Yen on the bankruptcy date. That's the only way Japanese bankruptcy law can work (most bankruptcy laws around the world operate this way for that matter). This means that the claims can be paid back in full, and there will still be over 160,000 bitcoin and bitcoin cash in assets in the Gox estate. The way bankruptcy law works is that if there are any assets remaining after the creditors have been paid in full, then those assets are distributed to shareholders as part of the liquidation.
That's the only way any bankruptcy law can reasonably work. And yet, in this case, it produces an egregiously distasteful outcome in that the shareholders of MtGox would walk away with the value of over 160,000 bitcoin as a result of what happened.
I don't want this. I don't want this billion dollars. From day one I never expected to receive anything from this bankruptcy. The fact that today this is a possibility is an aberration and I believe it is my responsibility to make sure it doesn’t happen. One of the ways to do this would be civil rehabilitation, and as it seems most creditors agree with this, I am doing my best to help make it happen. I do not want to become instantly rich. I do not ask for forgiveness. I just want to see this end as soon as possible with everyone receiving their share of what they had on MtGox so everyone, myself included, can get some closure.
I’m an engineer at heart. I want to build things. I like seeing what I build being useful, and people being happy using what I build. My drive, from day one, has been to push the limits of what is technically possible, and this is the main reason I liked and have been involved with Bitcoin in the first place. When I took over MtGox, I never imagined things would end this way and I am forever sorry for everything that’s taken place and all the effect it had on everyone involved.
Hopefully, I can make what I’ve learned in this experience useful to the community as a whole, so there can at least be something positive in the end.
Ask me anything you like.
It's not right to attribute malice to his deeds, but as far as it concerns me, I'd prefer my coins' private keys (since they can now cover everyone's coins). The previous decision of fiat reparations should be altered. I didn't have many coins held in there, but this is a bad joke for people with lot of coins trapped. So, I agree. Pretty poor performance so far.
That really is a good point. You should receive the private key to enable access to the forked chains. Surely the liquidation will involve consideration of all possible asset value via forks or it is negligent.
Unfortunately incompetence is far more common then malice like you say, which doesnt make it any better if they do ignore value that way. I would be surprised if that were the case, they surely have advice on such matters.
BTC is a token and they are liquidating it into dollars which is not the same but perhaps all they can achieve now. 'fire sale'
I certainly don't feel like a "relevant party", but as screwed party. But we should be aware that he could have screwed us much harder. 
Maybe next time they can just sell off 100% of the altcoins and not any of the BTC ;-)
A9. From the outset of the bankruptcy proceedings, we informed all relevant parties that we were going to sell BTC and BCH at the appropriate time. We discussed this with the Tokyo District Court and decided when we should sell them. Some creditors were of the opinion that we should sell BTC and BCH soon. We believe that obtaining a lot of funds made it possible for us to take the “measures taken to ensure the benefits of the bankruptcy creditors”.
I wonder who all relevant parties are, is there a list?
As a creditor I don't remember being asked my opinion if it was appropriate to crash the market. Was it in my benefit as a bankruptcy creditor? No.
Who decided on how to sell these BTC and BCH, why not use an OTC transaction?
I certainly don't feel like a "relevant party", but as screwed party. But we should be aware that he could have screwed us much harder.
About his decision to market dump, Jesse Powell wrote this:
For the record, Kraken was asked many months ago for advice on how to sell a large block of coins. Our answer was:
1. don't sell coins
2. If you have to, do it with an auction, which Kraken can facilitate
3. If you want to do it more privately, let Kraken's OTC desk broker it for you
We were explicit about not dumping a large amount of coins on the market. Unfortunately, it looks like the trustee made their own decision or was taking advice from elsewhere -- maybe whatever exchange they dumped those coins on. We had zero knowledge of these sales happening until it was announced at the recent creditors' meeting. Unfortunately, we have no visibility in to where, how or why the trustee sold those coins, nor whether any precautions were taken to prevent front running or self-dealing. Hopefully, the trustee will make it clear what their process was and put the questions to rest.
https://www.reddit.com/r/mtgoxinsolvency/comments/82ykgu/re_the_dumpening/
According to this guy here, we're done dumping.
Quote
Matt Odell@matt_odell
4/ Site setup for tracking the remaining 162k bitcoin under Mt Gox trustee's control: http://gaelb.alwaysdata.net/MTgox_watch_CW/index.html
Now that he has successfully sold enough bitcoin & bitcoin cash to cover the ~$414M owed to claimants, he is probably done selling. No coins have moved since Feb 5th.
https://twitter.com/matt_odell/status/9721935128495841294/ Site setup for tracking the remaining 162k bitcoin under Mt Gox trustee's control: http://gaelb.alwaysdata.net/MTgox_watch_CW/index.html
Now that he has successfully sold enough bitcoin & bitcoin cash to cover the ~$414M owed to claimants, he is probably done selling. No coins have moved since Feb 5th.
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