Mt.Gox Creditor: payments can "completely block the market"


Mt.Gox opens the civil rehabilitation process to the corporations

As reported previously by Ethereum World News, Mt.Gox, the now infamous exchange that has been violated for over 800,000 BTC, has just begun the process of claiming civil rehabilitation. For an official document of the judicial proceedings of the exchange, the victims of the hack can finally make claims on the over 170,000 BTC and BCH that have become part of the Japanese court case.

Victims of Mt Gox Hack. Credit: The Verge

To facilitate this process, Nobuaki Kobayashi, the trustee of the legal process, has released an online tool that guides potential applicants through the process of issuing a complaint, which requires creditors to submit legal documents and evidence concerning the matter.

It is important to note, however, that at the time of the original announcement, only the individual traders were allowed to participate in this process, with the Mt.Gox dealers affiliated with companies or companies who had to sit on their hands until further notice. However, as revealed in a recently published announcement, business merchants can now make requests through the same process mentioned above.

According to the announcement, creditors of the exchange, whether from a corporate or retail background, will have until October 22nd to file requests, at which point the online tool, along with the offline complaint process, will be closed .

After the deadline of October 22nd, all civil rehabilitation applications will be submitted to the Japanese courts by February 14, 2019, at the latest. Pending legal approval, the remainder of the Mt.Gox liquid assets, such as the aforementioned holdings in BTC and BCH, will be distributed among bona fide applicants.

Although this is evidently a positive development in the Mt.Gox five-year debacle, some fear that once payments begin to come out, that the market may collapse due to a potential mass liquidation event.

Payments could "completely destroy the market"

Talk to The Telegraph, Kim Nilsson, a former trader of Mt.Gox who "led the investigation of the bankruptcy of the exchange" said that the lack of request to buy thousands of Bitcoins from the Mt.Gox case could "completely block the market".

He explained that if someone or any group of people has ever tried to liquidate the shares of Mt.Gox to make payments in legal currencies, the market will crash. He based his prediction that there might not be enough demand for 170,000 BTCs and BCHs, so the sale of these digital assets would ruin orders, driving down the price of cryptographic resources on all fronts.

But he went on to add that all hope is not lost, stating:

It is possible that some people try to immediately sell Bitcoins as soon as they receive them, but it would probably be less than 100% of the people who do.

Regardless, Nilsson also pointed out that many creditors will be happy or how, given that their funds have turned into an appreciable investment and that it is "free money", even if payments have been held for " a certain number of years ".

  by Andre Francois on Unsplash 
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