The victims of Mt. Gox whose claims had earlier been rejected now have a second chance to reclaim their long lost BTC funds. Not everyone who used the disgraced Mt. Gox is entitled to get back their lost money. This even include those who lost money on the controversial BTC exchange.
Earlier on, a civil rehabilitation plan explained how the victims are supposed to get back their coins. It is only the approved creditors who have the right to raise the claims of other creditors. From there, they would then have the right to make an appeal. The Japanese law also offers room for self-approved claims. However, these creditors fall under a totally different set procedure.
May 7th Is The New Deadline For The Victims Of The Failed Exchange
It is now five years since Mt. Gox fell into pieces. But despite that long period, the former traders haven’t received the answers to where their BTC disappeared to. Self-approved claimants do not have lots of rights in relation to this case. They cannot vote on different aspects of the civil rehabilitation plan. This is a special power that is only granted to the creditors that have been approved by the Rehabilitation Trustee.
These victims have been given till the 7th of May to file an appeal with the Tokyo District Court. The court will then make decision whether the request is valid or not.
Reasons Why The Claims Were Rejected
The Trustee has stated that it rejected the claims on a number of criteria that should be strictly followed. One of the criteria is based on the balance of the user. If the user had a zero balance, for instance, then there is nothing that they can claim. The request would also be rejected if the BTC balance was less than the amount the person had claimed. However, they still have an opportunity to re-file if they do so within a certain time frame. The claim would also be rejected if the user is unable to prove that they were a Mt. Gox victim or not.
The huge Mt. Gox fraud had presumably attracted a number of fraudulent claims. There are also certain legitimate claims that have disappeared in between the process of identifying the non-legitimate.
Approved Creditors Can Still Reject Others’ Claims
Creditors is a term that is used here to refer to those who lost their money on this failed project. Eventually, they will be repaid out of the assets that remained when the exchange went bankrupt. A plan to repay all the creditors had been put forth by Brock Pierce, a cryptocurrency billionaire. Once all the creditors have been paid, there would be fresh plans to have the Bitcoin exchange running again.
Mark Karpeles, the exchange’s exonerated CEO, however, denied the claims that were made by the crypto billionaire. The Japanese authorities had recently brought several charges against the former CEO, and he was found not guilty.