Creditors of the now-defunct Mt. Gox crypto exchange have fully approved a recovery plan to compensate them for billions of lost bitcoins.
Gox trustee Nobuaki Kobayashi, about 99% of creditors hit by the collapse of the Japan-based crypto exchange, approved the recovery plan originally filed in Tokyo District Court in February, according to an October 20 announcement.
In addition, he reported that petitioners representing approximately 83% of the total voting rights had voted in favor of the plan.
The decision follows an October 8 vote by thousands of Mt. Gox, the damage estimated at billions of dollars. Kobayashi said asset distribution probably won’t start for a month, once the recovery plan is “final and binding”.
He added that creditors will shortly be registering their bank details on the website for remuneration.
First launched in 2010 by programmer Jed McCaleb and later by Karpelès, Mt. Gox was one of the largest exchanges in the world in the early days of cryptocurrency. A hack in 2011 and the subsequent collapse of the stock market in early 2014 affected almost 24,000 creditors – mostly holders of cryptocurrencies.
These events resulted in the loss of 850,000 Bitcoin (BTC), approximately $ 460 million at the time and $ 56 billion at press time. However, Kobayashi is only said to have 150,000 BTC to give back to users.
Japanese courts first approved the stock exchange’s motion for civil redress for Mt. Gox creditors in June 2018. This deadline has been extended repeatedly for various reasons, but the Tokyo District Court finally adopted the current draft recovery plan in December 2020 and in February issue a resolution allowing creditors to vote.
Related: Crypto City: A Guide to Tokyo
The Mt. Gox decision comes when the ruins of a volcano erupted on the Japanese main island of Kyushu for the first time in more than five years. Although the President of El Salvador, Nayib Bukele, has proposed using the country’s volcanoes to mine bitcoins, Japan does not appear to have such a system.