Mt Gox begins rehabilitation of business users raising concerns over the BTC crash

Over one billion dollars of Bitcoin, out of circulation since 2014, could soon be reabsorbed in the market as an exchange of cryptocurrencies in disgrace. Mt Gox enters the second phase of reorganization proceedings to repay its creditors.

Mt Gox, once the most important Bitcoin exchange in the world, announced last week that it has released a "system of filing complaints for online rehabilitation (…) for business users who have submitted their evidence bankruptcy using the MTGOX online bankruptcy filing system. "

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Users who have filed a valid bankruptcy application have until October 22, 2018 to file a claim for compensation and eventually be compensated for the losses suffered by the notorious Hack 2014 on the Japanese exchange. [19659002] The release of the complaint filing system for business users follows the release of the system for individual users on August 23

In June 2018, the failure of Mount Gox was concluded by a court in Tokyo, to conclude the distribution of Mt Gox's "huge assets" to shareholders for the time being. The sentence was welcomed by creditors as if it were officially moving the now deceased exchange into civil rehabilitation.

The payment, however, will not come immediately. Nobuaki Kobayashi, the trustee appointed by the court in the failure of Mt Gox, must formulate a new plan for the distribution of assets, which is scheduled for February 14, 2019. Currently there is no fixed date for payment to creditors.

Is. to BTC Crash Impending?

Mt Gox went offline in 2014 in the biggest stop in Bitcoin's history after 850,000 bitcoins worth $ 460 million at the time (and $ 5.5 billion now) were stolen in a hacking attack. Under suspicious circumstances, the exchange claimed to have lost track of about 750,000 bitcoins belonging to customers and another 100,000 of them, but later claimed to have found 200,000 bitcoins.

The recovered coins have been entrusted to Kobayashi. As of March 2018, it held about $ 1.9 billion worth of BTC and BCH. Kobayashi sold large amounts of BTC between December 2017 and February 2018 and was repeatedly accused of causing the collapse of the price of BTC

. A total of about 160,000-170,000 bitcoins ($ 1.03 billion at current prices) could be re-released in the market, raising the concerns of the cryptocurrency markets by taking a big hit. Kim Nilsson, a former trader of Mt Gox who "led the investigation into the bankruptcy of the exchange," he said The Telegraph that the lack of demand to buy thousands of bitcoins from the Mt Gox case could " completely block the market. "

However, Nilsson also said that while some people probably sell their Bitcoins immediately, others might actually see the gain as a boon

"It is possible that some people try to sell Bitcoins immediately as soon as they receive them, but it would probably be less than 100% of the people who do it," he said. "These Bitcoins have been held back by force for a number of years, but it turned out that they ended up being an investment that had great appreciation for people, and I'm sure some creditors will be happy to get the Bitcoins back because it will only be free money, "he added.

Who is behind the Mount Gox Hack? [19659009] The suspicion for the theft fell naturally on the site owner, Mark Karpelès.

Originally from Chenôve, Karpelès owned and operated the company at the time of the hack, but was originally founded by the American programmer Jed McCaleb, who subsequently continued to create Stellar and Ripple. According to Wired McCaleb sold the site to Karpeles because he felt unable to manage the sums of money that began to spill over.

According to most reports, Karpelès was no longer qualified. A self-taught misfit, he was more at ease in working on personal projects (such as opening a Bitcoin bistro in Tokyo with a revised cash desk) rather than dealing with the details of running a business. At the time of the collapse, the site had been sued for $ 75 million by a former business partner.

In addition, Karpelès, who owned 88% of Gox, had about $ 50 million in BTC in his personal position. It became clear in April 2018 that Karpelès was earning more than a billion dollars thanks to the majority stake in the company. He proclaimed in a session & # 39; ask me anything & # 39; of Reddit: "I do not want this, I do not want this billions of dollars From the first day I never expected to receive anything from this bankruptcy."

However, it also emerged that the money siphoning began in 2011 before Karpelès took the upper hand. In fact, in January 2018, two Americans reopened legal proceedings for over 9,500 bitcoins that were stolen from their Mt Gox wallets in 2011.

In related news, the United States and Russia are currently fighting for those who extradite a Russian citizen being held in Greece with the accusation of being accomplices in the Gox hack (among other things). Face decades in prison if you end up in America.