MT.Gox officially enters bankruptcy proceedings and will return BTC and BCH to debtors

Source: Shallot Blockchain

The bankruptcy bitcoin exchange Mt. Gox (Mentougou) has finally dealt with its legacy debt issues, and it mentioned more information on how to pay its debts in the future, in a document sent to the debtors on the eve of the creditors' annual meeting.

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According to the leaked draft, creditors can choose the form of liquidation claims they receive, or choose to receive fiat currency, or choose to receive compensation that is a mixture of fiat currency, bitcoin, and bitcoin cash.

However, there are no alternatives to cryptocurrencies other than Bitcoin and Bitcoin Cash. Other cryptocurrencies will be sold, and the document specifically mentions BSV, as well as BTG and some other cryptocurrencies. Statistics show that Mt. Gox used to hold nearly 202,000 BSVs (currently worth 35 million US dollars).

Some will be settled in fiat currency, so investors are worried that the Bitcoin or BCH sell-off will not occur, but BSV is not included in the debt repayment option, which means that BSV will be sold or has been sold.

The fiat currency portion will be sent directly to the debtor's bank account in yen, dollar or euro. Part of Bitcoin and BCH will be sent to the debtor through several specific exchanges, and the specific exchanges have not yet been mentioned in the document. Overall, under the combination of BTC / BCH and fiat currency, the debtor is expected to receive about 25% of the original amount. This will make everyone very profitable in their original investment, as the price of Bitcoin has risen a lot since the 2014 freeze.

This is currently a proposal, but overall it is reasonable, so it can be expected that the draft will be approved at the forthcoming annual meeting of creditors. If the draft is approved, it means that soon, in a few weeks, all debtors will receive repayments of approximately 200,000 BTC, as well as BCHs distributed at their choice, either in fiat or cryptocurrencies.

Source: trustnodes (https://www.trustnodes.com/2020/03/24/mt-gox-gears-up-to-distribute-bitcoin-and-bitcoin-cash-will-sell-bsv-and-other- cryptos)

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