FROM BITCOIN SELL-OFFS TO CIVIL REHABILITATION PROCEEDINGS

Mt. Gox Crypto Exchange based in Tokyo starts Civil Rehabilitation Proceedings instead of continuing to sell Bitcoins off.

On June 22 Nonexistent Bitcoin exchange Mt. Gox has started civil rehabilitation proceedings.

Nobuaki Kobayashi was announced to be responsible for selling large tranches of Bitcoin reserves in order to compensate the users of Mt. Gox who had lost their money in the exchange’s mass hack in 2013.

All these sell-offs seem to affect the markets significantly. After each and every transaction conducted by Kobayashi on main exchanges, Bitcoin prices have fallen down.

Kobayashi claimed in the new documents that he would implement the civil rehabilitation proceedings alongside with administrating MTGOX’s assets; moreover, investigating complaints under the Tokyo District Court’s control.

Nevertheless, it is the bankruptcy proceeding (which is being terminated at the moment) that prevented Kobayashi from further bitcoins’ sale. The users will obtain compensation in BTC instead of fiat currency.

Speaking about Mt. Gox, it received the status of being infamous in the crypto industry right after a hack, resulted in a collapse in 2014, which has led to the biggest loss of funds in the history of crypto constituting overall customers’ losses of $473 million.

Source:

https://cointelegraph.com/news/mt-gox-crypto-exchange-begins-civil-rehabilitation-proceedings-ends-bitcoin-sell-offs

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