Mt. Gox Placed Under Civil Rehabilitation Procedures By The Tokyo District Court

The Mt.Gox case, one of the most emblematic cases regarding the theft of digital coins, could be resolved favorably for creditors, once the Tokyo District Court heard the petition to initiate a civil rehabilitation proceeding and suspended the ongoing bankruptcy proceeding.

The decision was made known on Friday, June 22nd, 2018, through Nobuaki Kobayashi, who was appointed by the court as trustee in this new state of the trial. Until now, Kobayashi was the bankruptcy trustee of Mt.Gox. The replacement of the Bankruptcy process by a civil rehabilitation process had been filed by a group of creditors on November 29th, 2017, to find a more flexible and beneficial formula for handling the company’s bankruptcy.

The trustee explained in a document he released on Friday that the main difference between the two processes is that, in “bankruptcy proceedings, non-monetary claims become money claims,” thus explaining why the company’s assets must be liquidated to compensate creditors. That does not happen in the civil rehabilitation procedures, which will allow the company to respond to the creditors who demand the return of their Bitcoin (BTC).

Nobuaki Kobayashi, Mt. Gox “Bitcoin Whale” trustee, also presented the schedule of the Mt. Gox civil rehabilitation procedures

While serving as bankruptcy trustee, Nobuaki Kobayashi became famous for selling about $400 million in Bitcoin (BTC) and Bitcoin Cash (BCH) on behalf of Mt. Gox’s creditors. He also had $1.9 billion more to liquidate.

There were rumors in the cryptocurrency community that the Mt. Gox civil rehabilitation process might have affected the value of Bitcoin (BTC) which dropped significantly in the last days.

During this new phase of the Mt.Gox case, creditors must refile their claims with the trustee, and this procedure will open the door for the creditors who lagged behind in the first round. Nobuaki Kobayashi will re-evaluate the claims under the supervision of the Tokyo District Court.

The trustee presented a tentative schedule for the civil rehabilitation procedures, where a meeting with the creditors regarding the state of Mt. Gox assets will take place on September 26th. The program also indicates that the Mt. Gox civil rehabilitation plan will be ready by February 14th, 2019.

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