Victims who lost USD 1 Billion of Bitcoins in Mt. Gox hack to be returned

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Victims who lost USD 1 Billion of Bitcoins in Mt. Gox hack to be returned

On Friday, a Japanese court had ruled to pull infamous Bitcoin exchange Mt. Gox out of bankruptcy. There is at least an amount of USD 1 Billion in the worth of Bitcoins to be returned back to the rightful owners.

Since the creation of Bitcoin close to a decade ago, this news and decision is such a stunning outcome for the victims that have been hacked. The largest Bitcoin exchange in the world used to Mt. Gox and they collapsed in the year of 2014, after the short realization that they have lost all the cryptocurrencies that they held. All of the 850,000 Bitcoins. Back then these Bitcoins had been valued at a price tag of USD 473 million roughly at the time. The Mt. Gox hack is still the largest theft that has occurred in the theft of Bitcoins in history.

Mt. Gox’s then-CEO Mark Karpelès has subsequently discovered about 200,000 Bitcoins, that money had been frozen in the Tokyo Based company’s bankruptcy estate cases ever since. For more than four years now, the creditors of Mt. Gox have been unsure if they would ever receive their refunds, or if they would either receive paper money or their Bitcoins back. This is still the case, despite the fact that the value of the recovered asset so far had soared to an evaluation of USD 4 billion when the price of Bitcoin had gone to its peak last year.

Shin Fukuoka, a leading attorney and partner at Japan’s Nishimura & Asahi law firm, who petitioned the Court for civil rehabilitation on behalf of a large creditor, wrote in a statement, “Enormous assets…will be returned to creditors of Mt. Gox. This is the creditors’ victory.”

The court had also confirmed that those who are seeking for their refunds shall receive the same in that form. Under the original bankruptcy plan, the creditors can only receive their amount lost in the monetary value that is equivalent to the amount that they had lost at the time of the evaluation of Bitcoin. This is good news for Karpelès and also a relief to him when he was on trial in the court of Tokyo for embezzlement and other criminal charges. He had feared a backlash of a number of lawsuits if he was to collect the rest of the amount for the peak price of how much the Bitcoin is worth in today’s value.

Karpelès told Fortune in a message following the announcement, “I hope entering civil rehabilitation will be for the best of everyone. As I said previously I am not expecting any kind of profit from this and only hope everyone will be repaid as much as possible as soon as possible. Creditors worked hard for the purpose of seeing civil rehabilitation happen and I will continue to help as much as I can.”

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