The once insolvent crypto exchange Mt. Gox can now be put back into operation after a Japanese court has ordered civil rehabilitation and thus ended the bankruptcy proceedings.
Mt. Gox insolvency proceedings suspended due to Bitcoin revolution
According to the Bitcoin revolution accounts, the sale of Bitcoin revolution and Bitcoin Cash, worth half a billion dollars, by the MT Gox receiver, significantly affected the price between December and March.
“On 22 June 2018 at 17:00 the Tokyo District Court issued a decision to initiate civil reorganisation proceedings for MTGOX. This suspended the current insolvency proceedings.”
This paves the way for what was once the largest crypto exchange to reinstate at least the remaining 165,000 Bitcoin and Bitcoin Cash in its repertoire. But the creditors and debtors themselves will determine how exactly the scenario will continue.
“In the civil restructuring procedure, the debtor in principle retains the authority to manage and sell the assets.
A creditors’ meeting will be held on 26 September 2018 to decide on the redistribution of the funds. In the civil restructuring proceedings, the claims for reimbursement of Bitcoins (“Bitcoin Claims”) will not be “converted” into monetary claims, so that it can be assumed that the sell-off of Mt Gox Coins will finally come to an end.
Creditors could expect deposits in Bitcoin profit
The strong downward pressure between December and March was influenced by a volume of 35,000 Bitcoin profit sold on the market by the insolvency administrator of Mt Gox. If the remaining 165,000 Bitcoin profit had to be sold now, this would depress the price considerably.
Under Japanese insolvency law, creditors must be paid in fiat currencies, so the receiver had to sell BTC and BCH. It is unclear why the parties did not agree on OTC trading (over-the-counter) in order not to influence the crypto currency market too strongly.
Since the court has ordered the civil rehabilitation, the creditors can now be paid in Bitcoin, which could rule out further price pressure from the insolvency administrator of Mt Gox in the future.