Those who lost money in the Mt. Gox implosion and would like to get some or all of it back have been given an extension to file their claim with the failed exchange's bankruptcy advocate. It is unclear what effect making a bankruptcy claim through…
It is unclear what effect making a bankruptcy claim through the online method will have for customers who are seeking to recover funds. For one thing, the agreement on the “online portal” option prohibits users from seeking further legal action if they receive “any funds.”
If I/we choose to receive a distribution in cash by payment into an account at a financial institution, I/we will not make any claim, including any claim for damages, against MTGOX and/or its bankruptcy trustee, even if I/we am/are unable to receive the said cash distribution, or if I/we am/are only able to receive the cash distribution money after deducing various fees, etc. due to any cause including the entering of incorrect information, the type of currency dealt with by the financial institutions or the non-existence of a business relationship with the bank which is transmitting the money, a violation of Japanese or foreign legal regulations or the internal policy of each financial institution, or the incurrence of various charges.
What this essentially means is that so long as Mt. Gox tries to pay an affected user, it does not matter if the user cannot receive the money, Mt. Gox is still off the hook. It may seem to be just covering as many areas as possible, but it seems important that the victims of the exchange get their recompense.
The rate that the bankruptcy proceedings are using is at least more favorable for the victims, as it was frozen in April of last year at more than $400. If customers had to be compensated based on today’s value, they’d obviously be losing a lot more than they will with the rate being used. The problems at Mt. Gox went on for awhile before the exchange pulled out and shut down, however, so there’s no real telling how much money people will actually get back in relation to how much they lost. There’s also no word on if entire deposits are going to be returned, or whether partial payments will be arranged, or agreements reached. It seems the fundamental reason for this entire process is to limit the liability for Mt. Gox as much as possible.
As to what went wrong at Mt. Gox, there has been little to come out of investigations over the past year and a half. It has been insinuated that bot trading ran rampant and began trading coins that never existed on the exchange, in effect creating a severe deficit in coins owed and coins on hand. Japanese investigators have since concluded that the exchange was almost certainly not hacked from the outside. Mark Karpeles himself has been very quiet about what he believes happened though this is probably to avoid any inkling of self-incrimination.
Those who lost money on the legendary exchange have until July 29th to file a bankruptcy claim through claims.mtgox.com.
Featured image from Shutterstock.
Last modified: January 25, 2020 11:07 PM UTC