Mt Gox’s Victims of Crypto Fraud Have A Deadline Till October For Lodging Reimbursement Claims

Cryptocurrency News

Victims of notorious Mt Gox’s crypto fraud are to vote in favor of the rehabilitation process through which claimants will be reimbursed according to their proportionate shares due towards Mt Gox. The last day of casting is Friday, 8th October 2021, and 50% of votes are required for approving the rehabilitation proceedings.

A rehabilitation proposal under the civil proceedings has been presented by the trustee appointed at Mt Gox namely Nobuaki Kobayashi. However, in order to implement the proposal, it will need to be passed by a majority vote cast by the victims of Mt Gox. According to the proposal, at least 50% of votes are required to be in favor of the proposal to make it implementable.

The deadline for casting the vote has been set as Friday, 8th October 2021. Each and every customer of non-operational Mt Gox will have the voting right. In case a customer fails to cast his or her vote, then the act of non-voting will be regarded as “Nay”. This would mean that the customer is not in favor of the rehabilitation proceedings.

Kobayashi stated that it is important for every claimant of Mt Gox to cast their votes. In the absence of such a vote or in the situation of “nay”, the claimant will lose his or her right to reimbursement. While the ones who will cast vote will be entitled to claim their lost funds.

The details of the proposal were duly described in the letter of 31st May 2021 which was authored by Kobayashi. The letter noted further that the voting has been sent live and claimants are free to cast their votes. The system of voting in favor of the proposal has been initiated for ensuring reimbursements to the claimants.

If the proposal is able to acquire 50% votes then the District Court of Tokyo, dealing with the matter, will be bound to pass a decree. The decree will then be passed in favor of the claimants and against the non-operating Mt Gox. As per the decree, the Trustee will then ensure the return of money to the claimants according to their proportionate shares. However, the payments will be handed over to the beneficiaries in terms of the Rehabilitation proposal which requires votes.

Meanwhile, Kobayashi has informed further that very soon the claimants will be provided with the voting papers. Along with voting papers, there are other ancillary documents, which need to be duly filled in and submitted to the Trustee.

The matter of claimants’ reimbursements has been lingering on for more than 7 years after the closure of Mt Gox. Reportedly, the crypto trading platform lost 850,000 Bitcoins to the thieves which culminated in the loss of US$ 29.5 Billion. Out of these 850,000, through the involvement of law enforcement agencies and courts, only 200,000 Bitcoins have been recovered after the theft.

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