Mt.GOX Voting Deadline For Creditors Has Officially Ended

Mt.Gox voting deadline for the creditors of the exchange has officially ended as we are reading more about it in our latest cryptocurrency news today.

The now-defunct exchange based in Tokyo, Japan closed its operations in 2014 after thousands of bitcoins were stolen by unknown hackers. The process of making the exchange’s victims whole has been quite a long process and was characterized by legal disputes and delays. Today, we can see an end of a process which was the deadline for creditors to approve or to reject the civil rehabilitation proposal for compensation.

The Mt.Gox voting deadline ended today as the process started on May 31 and creditors had over four months to cast the votes by mail or electronically. About 50% of the creditors’ voting shares will need to have voted “yes” for the plan to go on but the votes of those who did not respond at all will be considered as “no.” According to the plan, the creditors will be partially compensated for their lost funds in Bitcoin, Bitcoin Cash, and the Japanese Yen. The coordinator of the creditors’ group Mt.Gox LEgal, said that these creditors have been asking the Tokyo District court representative and the Trustee to give some more clues as to whether the threshold has been crossed by to no avail. He said:

“If we had been able to get an update, say, after half of the voting period had passed, and that update indicated that the participation rate in the vote was worryingly low, then we could have tried to fundraise and allocate those funds to bring more attention to the issue.”

He added that he hopes the voting still goes through and the rehabilitation plan got approved because otherwise, some creditors feared that instead of the civil rehabilitation, the entire process could revert to bankruptcy which its CEO Mark Karpeles filed for as the exchange became insolvent. The creditors said:

“It’s such a huge difference between what creditors receive under the civil rehabilitation plan, and what creditors would receive if we reverted to bankruptcy, so it’s difficult to see anyone voting against.”