“Tokyo Whale”- Mt.gox Narrowly Avoids Bankruptcy-Mt Gox was a cryptocurrency exchange based in Tokyo and had been providing about 70% of Bitcoin transactions. Which was worldwide before suffering a major cyber attack, which led to its bankruptcy. In 2011, the price of Bitcoin on the Mt. Gox exchange dropped to a record low of one cent due to a security breach. Then a sum of Bitcoins equalling more than $8,750,000 was transferred to the hackers’ accounts.
On 28 February 2014 Mt. Gox filed in Tokyo for a form of bankruptcy protection from creditors eventually closed its website, all of its services. Mt Gox is subject to numerous lawsuits from its customers. The debt owed to them still amounts to over $60 million. Mt.Gox’s latest news states that enough Bitcoins were sold to cover the claims of creditors.
“Tokyo Whale”- Mt.gox Narrowly Avoids Bankruptcy-Japanese cryptocurrency exchange Mt. Gox has another uphill task as they had got approval that allowed the estate to exit bankruptcy and enter the civil rehabilitation. Mt. Gox has stated that they have sold 24,658.00762 BTC & 25,331.00761 BCH – quantities that brought in 25,975,702,352 Japanese yen with is approx $230 Million. This sale was made on the 7th of March, 2018.
What made Mt. Gox go bankrupt?
Mt Gox said it had lost almost 750,000 of its customers’ bitcoins and around 100000 of its own bitcoins. The amount totals around 7% of all bitcoins and worth around $473 million near the time of the filing which was stolen by the hackers.
On 20 March 2014, Mt. Gox reported on its website that it found 199999.99 bitcoins — worth around $116 million — in an old digital wallet used prior to June 2011. That brought the total number of bitcoins the firm lost down to 650,000 from 850,000.
As a result court-ordered civil rehabilitation pressure to the company. Hence Kobayashi has begun the process of liquidating its assets for dissemination to those affected by the 2014 data breach and hack.
On Sept. 25, 2018, a representative for Kobayashi said in a statement:
“As a result of consultation with the court and the examiner, the bankruptcy trustee determined that it was necessary and appropriate to procure a suitable amount of money to secure the interests that the creditors for the principal amount and delay damages of the determined and undetermined bankruptcy claims that have been filed in the Bankruptcy Proceedings which were expected to have already obtained in the Bankruptcy Proceedings, and implemented the Sale.”
Mt. Gox avoids bankruptcy and enters into the civil rehabilitation
In order to repay the lost bitcoins of its users, Kobayashi consulted a lot of cryptocurrency experts during the BCH and BTC sales, and he did not sell the Cryptos Using an Ordinary Exchange.
“Following consultation with cryptocurrency experts, I sold BTC and BCH, not by an ordinary sale through the BTC/BCH exchange, but in a manner that would avoid affecting the market price, while ensuring the security of the transaction to the extent possible” Kobayashi details.
Mt. Gox made an agreement set by Sumitomo Mitsui Banking Corporation, which makes sure that assets are distributed in a secure way and to get back the trust from its users and avoid bankruptcy.