Mt Gox Creditors Are Preparing to Claim for Bitcoin Repayments

A group of creditors of the defunct bitcoin exchange Mt. Gox have started preparing to claim for bitcoin repayments following a court's decision in June.

Lawyers representing several Mt. Gox creditors - who filed a petition in November to move Mt. Gox out of bankruptcy and into a process of civil rehabilitation - on Thursday published an updated proposal for the process.

The policy stated in June that it would be "Appropriate" to repay creditors who deposited BTC and BCH with Mt. Gox in the same cryptocurrencies instead of cash.

"We are of the opinion that most of the assets, including approximately 166,000 BTC and 168,000 of BCH and other derivatives currently held by Mt. Gox, should be paid to creditors at the time of the first payment."

The revised policy stated that the first payments to creditors are expected to start in May or June 2019, if the rehabilitation plan can be approved, that is.

Currently, the lawyers representing the group of creditors are seeking further feedback before a formal rehabilitation plan can be finalized and presented to the court by February of next year.

The revised proposal stated that cryptocurrencies other than BTC and BCH held by Mt. Gox should be liquidated into cash and paid to creditors since their prices could fluctuate significantly and security risks may arise if they are moved around from wallet to wallet.

Subsequently, creditors went into a years-long process in a bid to retrieve their trapped funds.

Amid bitcoin's price spike to close to $20,000 late last year, a group of creditors filed a petition to the bankruptcy court in Tokyo to move the case into civil rehabilitation.

Nobuaki Kobayashi, the rehabilitation trustee, said in July that a new system for creditors to file proof for claiming repayments is expected to be released in August.