MtGox Lenders Will Discuss the Allocation of Funds at a Semi-annual Meeting on March 25

MtGox Lenders Will Discuss the Allocation of Funds at a Semi-annual Meeting on March 25

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OnMarch 25, a semi-annual meeting of creditors of the bankrupt cryptocurrency exchange MtGox will be held, at which a plan for the distribution of funds for damages will be discussed.

According to the agenda published shortly before the date of the meeting, lenders will be able to receive funds in full in fiat currency or partially in fiat and cryptocurrency — BTC or BCH.  Money will be distributed at the current rate, and not at the rate in force at the time of closing the exchange.

The first to receive compensation will be those who have lost large sums in the BTC on the exchange, as well as those who need to cover the interest rate in fiat currency. At the second stage, payments will be made to those whose losses amounted to less than $2,000. The trustee of MtGox plans to pay small amounts of up to 200,000 yen to each creditor. Then proportional payments will be distributed.

Payments in fiat currency will be sent to bank accounts after the lenders provide the relevant information about the recipient bank, then the funds will be transferred from the bank account of the MtGox trustee. If payments will occur in BTC or BCH, then digital assets will be transferred to the accounts of cryptocurrency exchanges.

This meeting will be the next step that can bring lenders closer to the treasured compensation for their losses. In 2017, payments were delayed in connection with the 75 millionth Coinlab lawsuit, which was filed before the bankruptcy of MtGox. Then Coinlab accused MtGox of violating the terms of the contract. In addition, the delay was associated with the consideration of another 100 claims from other clients of the exchange.

In December, the Fortress Investment Group invited affected creditors to buy from them exchange debts at a price of $787 for 1 BTC, which at that time amounted to 70% of their current value.

Previously, MtGox was considered the largest exchange – by 2014, it processed more than 70% of international transactions with Bitcoin. The exchange closed in February 2014 due to a hack that stole 650,000 BTC, which currently stands at about $4.3 billion.