Mt. Gox Announces Civil Rehabilitation Proceedings: What To Expect Next

Journalist:
Caleb Chen @bitxbitxbitcoin
March 2, 2014

Mt. Gox has broken their 3 day silence with a new plain text update to their website.

The English text of which reads:

ANNOUNCEMENT REGARDING AN APPLICATION FOR COMMENCEMENT OF A PROCEDURE OF CIVIL REHABILITATION

An overview of the situation should be published here shortly (probably on March 3, 2014 (Japan time)).

Contact information

A call center has been established to respond to all inquiries. The call center is planned to start on March 3, 2014. All inquiries to MtGox Co., Ltd. should be made to the following telephone number:

Telephone number +81 3-4588-3921
Working hours Monday to Friday 10am to 5pm (Japan time)

Please refrain from contacting the office of the supervisor/investigator.

That’s right, if you have Goxcoins, you have been given a phone number to dial. Reports from Reddit are already trickling in of Bitcoiners’ responses from calling the number and I’m sure more will surface.  For those fortunate enough to not have Bitcoin tied up in this ongoing fiasco, many are simply wondering what Civil Rehabilitation even means.

Civil Rehabilitation Procedure

This detailed flow chart form Jurists.co.jp shows the Civil Rehabilitation Procedure

Mt. Gox is currently on step one of Civil Rehabilitation Proceedings.  Essentially, Civil Rehabilitation would call for all of Mt. Gox’s assets and liabilities to be counted as if a bankruptcy were occurring.  These proceedings try and get at a liquidation value.

A magic number will appear from this, that they will try and get creditors to swallow, of which they only require a majority.  Individuals with Bitcoin or fiat currently stuck in Mt. Gox would receive a percentage of their real original worth. Seriously, don’t be surprised if Mt. Gox’s exchange rates are used in Mt. Gox’s calculations of how much the several hundreds of thousands of Bitcoin are “really worth.”

What to expect next

The next step is the preservation order to protect Mt. Gox’s assets, whatever they are, so the company can continue to operate.  Also, the Japanese court will be appointing a supervisor to oversee these proceedings.  Given that this has the potential to be one of the largest examples of financial criminal negligence or institutional financial theft. I’d say a supervisor is a good choice.

Questions to the character of Mark Karpeles? Other Questions?

A french interview with Anna Karpeles, mother of Mark Karpeles, reveals that Mark was under investigation for computer fraud when he left France for Japan.

There is currently so much speculation going on about Mt. Gox that it is difficult to sift through all of it to find the truth, especially when the truth hasn’t yet been revealed by any trusted sources.  If you’re interested in delving deeper into the rabbit hole of Mt. Gox’s Bitcoin loss, check out Falkvinge’s article and the blockchain detective work of Bitcoiners on Reddit.

In other news…

I’m going to stick in relevant Bitcoin happenings from around the globe directly into Mt. Gox news articles from now on to keep peoples’ minds on track.

An as of yet unknown Bosnian newspaper on March 1st, 2014 ran a story about protests + Bitcoin in the still tenuous Bosnia and Herzegovina area.  In case you’re wondering, Bosna is the name for Bosnia in the Bosnian language, and also the name of the river and the geographical region through which it flows.

Please contact us if you have any information about Bitcoin in Bosnia!

Support Bosna!

Take your mind off of Mt. Gox, Support Bosna

Last modified (UTC): March 2, 2014 07:16

Caleb Chen @bitxbitxbitcoin

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.