Gox’s civil claims compensation case has taken another step forward, and some victims may be able to receive compensation for the money they lost in the hack more than a decade ago, and those claimants will now vote on whether to accept the civil compensation proposal. According to official sources, the deadline for claimants to vote online is Oct. 8, 2021.
It is worth noting that, according to the notice published by the Mt. On the other hand, since the proposal requires at least 50% of the votes cast to pass, it could fail even if a majority of the votes cast are in favor of compensation.
How would compensation spending work?
According to a letter issued by Mt. Gox to claimants in 2020, the proposed compensation would be in the form of Yen, Bitcoin/Bitcoin Cash reimbursement to creditors, and the total value of each claim would be denominated in Yen at a price of nearly $7,000 per BTC, which is the rough filtered share price after the civil compensation was launched in 2018, and now the Bitcoin price has soared to $37,000 or so, unrecognizable from the price at the time of the hack.
Mt. Gox was repeatedly hacked from 2012-2014 and eventually had to declare bankruptcy. Since 2014, the bankruptcy process has gradually evolved into a compensation process, however their compensation plan has dragged on and on, leaving many creditors exhausted, some of whom have sold their claims to law firms, individuals and other stakeholders.
Under the terms of the proposal, if a claimant files a statutory bankruptcy claim on the same day, they will be entitled to full damages, and priority of payment of damages. For other stakeholders, there are several other options.
First, all approved creditors will receive a base payment of up to 200,000 yen (approximately $1,800), which will be added to their total claim amount.
Next, creditors have two options: the first option, “Early Sum,” allows them to choose a faster early payment option, which will get them approximately 21% of their claim amount quickly; the second option, “Final,” allows creditors to wait for a period of time for their claim to be paid. The creditor will have to wait for a period of time and the claim amount may be a few percentage points higher, but this is not fully guaranteed – that is, even if you wait for a period of time, you may still not get more compensation for the first time.
For example, if you choose the “Early Sum” payment option, a person who previously lost 1 BTC and $1,000 will receive a basic (small) payment of 200,000 yen ($1,826.43), as well as 0.13194012 BTC and 0.13302035 BCH and 247,396 JPY (worth almost $10,000).
If the same person selects the “Final” payment option later, they may receive compensation up to $11,000, but they may also receive an earlier compensation of less than $10,00.
Mt. Gox is unable to provide any guarantees because the total value of their legal tender holdings of over 141,000 BTC and 141,000 BCH and approximately 68 billion yen may fluctuate. Gox should have approved claims totaling 680,000 BTC/BCH and 8.8 billion yen (and 130,000 BTC/BCH and 50 billion yen), with additional claims pending; therefore, at this point, it is impossible to know exactly what the final total payout to all creditors will be. to all creditors.
What also needs to be clarified is how these funds will be denominated – as of now, creditors who lost funds in fiat currency will be paid in Japanese yen, while all other cryptocurrency amounts owed will be paid in a mix of BTC and/or BCH and Japanese yen.
This follows news that most creditors want to be compensated in bitcoin, such as Alex Ortega, managing director of Iverson Capital Group, who said that many creditors are unhappy with this compensation plan, arguing that the trustee should not be allowed to settle fiat currency claims by selling the recovered bitcoins, and that most creditors want to remain bitcoin market professionals, and that selling bitcoins and paying them out in fiat currency would not only subject creditors to trading prices, but also limit the potential upside of bitcoin itself, as a mass sell-off would likely trigger market turmoil, as happened in 2018.
It is estimated that due to the shortage of recovered cryptocurrency funds and the large number of fiat currency transactions conducted over the past few years, approximately 30% of the BTC/BCH amount compensated by Mt. Gox may have to be settled in Japanese yen, with other payments in cryptocurrency being sent to trustee-approved white-listed cryptocurrency exchanges.
Will the vote have a dramatic outcome?
If this proposal is accepted by a majority of stakeholders, individuals can decide for themselves which of the two payment options mentioned above – “Early Sum” or “Final ” – which of the two payment options mentioned above.
If the vote fails, this means that the compensation plan is “returned” to the trustee and the board of directors, leaving creditors to wait for a new compensation plan proposal to be created. Given the time it would take to recreate the compensation proposal, not accepting these provisions could force creditors to wait even longer for any compensation to be paid.
Will dramatic results emerge from this vote? Let’s wait and see!
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/mt-gox-launches-vote-on-claims-proposal-will-there-be-dramatic-results/
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