Mt. Gox Rehabilitation Plan Approved
Market Musings

Mt. Gox Rehabilitation Plan Approved

All of this marks the end of a seven-and-a-half year wait for compensation for the tens of thousands of people who had accounts at Mt. Gox.

Mt. Gox Rehabilitation Plan Approved

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A rehabilitation plan that would reunite Mt. Gox victims with billions of dollars has been overwhelmingly approved. 

A whopping 99% of affected creditors cast a vote on the proposals, with 83% saying they were in favor of the plans that had been put forward by the trustee.

The outcome of the ballot is expected to be finalized in a month’s time — and from here, repayments will begin to be made. 

Mt. Gox collapsed back in 2014, with 850,000 stolen in an audacious hack. The exchange later closed.

Some 150,000 BTC was later recovered, and the rehabilitation plan concerned how this should be distributed to those who lost funds.

Given how Bitcoin was only worth hundreds of dollars at the time, some of the creditors affected could be turned into millionaires overnight.

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The End of a Long Journey 

All of this marks the end of a seven-and-a-half year wait for compensation for the tens of thousands of people who had accounts at Mt. Gox.

Some are concerned that the return of long-lost funds could spark sell-offs in the crypto markets.

But in a recent episode of the CoinMarketRecap podcast, CrossTower analyst Martin Gaspar said:

“If they were involved in Mt. Gox, they were early adopters — early believers. So I don’t think we’re going to see as much selling pressure from these sorts of investors. Bitcoin has continued to outperform all other assets during this timeframe, so I think a lot of them will feel it may just be safer to hold on to their Bitcoin.”