MTGOX rehabilitation plan gets Court approval

Nobuaki Kobayashi, the Rehabilitation Trustee of MTGOX, has provided an update regarding the rehabilitation proceedings concerning the ill-fated Bitcoin exchange.

The Rehabilitation Trustee announces that at a creditors’ meeting held on October 20, 2021 at the Tokyo District Court, the draft rehabilitation plan filed by the Rehabilitation Trustee with the Tokyo District Court on February 15, 2021, was approved by a large majority of rehabilitation creditors (i.e., approximately 99% of the voting rehabilitation creditors voted for the Draft Rehabilitation Plan, and approximately 83% of the total amount of voting rights was exercised in favor of the Draft Rehabilitation Plan.

On the same date, the Tokyo District Court made a confirmation order of the Rehabilitation Plan.

Depending on the situation, the confirmation order is expected to become final and binding in approximately within one month. The Rehabilitation Trustee will make another announcement if the situation changes. The Rehabilitation Trustee will then make repayments to rehabilitation creditors holding allowed rehabilitation claims in accordance with the Rehabilitation Plan.

After the confirmation order becomes final and binding, the Rehabilitation Trustee will request all the rehabilitation creditors to register their bank account information and other information on MtGox’s Online filing system in order for them to receive repayments.

Let’s recall that, in November 2017, some of the creditors of MTGOX Co., Ltd. filed a petition for commencement of civil rehabilitation proceedings against the Exchange with the Tokyo District Court. The petition was heard, and at 5:00 p.m. on June 22, 2018, the Tokyo District Court issued an order of the commencement of civil rehabilitation proceedings for MTGOX.

As a result, the previously ongoing bankruptcy proceedings were stayed. In addition, simultaneously with the order of the commencement of civil rehabilitation proceedings, an administration order was issued by the Tokyo District Court, and Nobuaki Kobayashi was appointed Civil Rehabilitation Trustee.

The power and authority to administer and dispose of MTGOX’s assets is still vested exclusively in Nobuaki Kobayashi. He implements the civil rehabilitation proceedings, including the administration of MTGOX’s assets and the investigation of claims, subject to the Tokyo District Court’s supervision.