Nobuaki Kobayashi, the civil rehabilitation and bankruptcy trustee of the now defunct bitcoin exchange Mt. Gox has announced a set of measures aiming to secure the interests of bankruptcy creditors, including the sale of large amounts of cryptocurrency for fiat money.
According to the document released on Tuesday, September 25, the trustee has offloaded 24,658 Bitcoin and 25,331 Bitcoin Cash, generating a total of JPY 25.9 billion, or USD 230.1 million. As a result of the sale, the balance in the bankrupt trustee’s account reached approximately JPY 70,059 million.
As revealed by Nobuaki Kobayashi, the disposals were made in the period since the 10th creditors meeting was held on March 7. The total compares with 43 billion yen in the prior round of sales, which was announced six months ago.
According to calculations by Bloomberg, based on the yen raised and the number of coins sold, the latest disposal received an average price of $8,100 per Bitcoin.
In addition, the bankruptcy trustee created a trust by entering into an agreement with Sumitomo Mitsui Banking Corporation (SMBC) as a measure to secure interests expected to have already been obtained by the monetary creditors who filed proofs of bankruptcy claims in the Bankruptcy Proceedings. SMBC will act as a trustee of the Trust.
The document adds that currently the trust holds “a suitable amount of money to secure the interests [of] BTC creditors under the Bankruptcy Proceedings in connection with BTC claims to be treated as non-monetary claims under the Civil Rehabilitation Proceedings.” The trust assets amount to JPY 15,894,530,915 as of the date of its establishment.
Mt. Gox was the world’s dominant Bitcoin exchange until 2014, when hundreds of millions of dollars’ worth of cryptocurrency was stolen in a hack. The culprits were never found, the exchange went bankrupt, and many people lost a lot of money.
The exchange began a stage of its rehabilitation process last week, announcing that users of the exchange have until the 22nd of October to file a claim. Potentially, approximately $1 billion worth of Bitcoin could be re-absorbed into the market as creditors are repaid.
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