The Epic Fall of Mt Gox, which has been going on since months ago, is due to be drawn out for several months more. Earlier today, the Mt. Gox website was updated with a new document from the bankruptcy trustee assigned by the Tokyo District Court for the MtGox Co., Ltd Case No. 3830. The document revealed Nobuaki Kobayashi as the Attorney-at-law appointed as bankruptcy trustee. His appointment means that Mr. Kobayashi will have the power and authority to administer and dispose of the assets of the Company as well as the power to implement the bankruptcy proceedings, realization of assets, and investigation of claims. Since the Mt Gox fiasco first imploded/exploded over a month ago, Gox has moved through every possible solution and has been unable to find a buyer. From civil rehabilitation to liquidation, it’s been a rough ride. Unfortunately for folks with Bitcoins or Fiat stuck in the collapsed Mt. Gox, the ride won’t be finished until at least February 25th, 2015.
[dropcap size=small]A[/dropcap] few hours ago, Mt Gox updated their website with a second document for 4/24/14. This document was issued by the Tokyo District Court in charge of the MtGox Co., Ltd Case No. 3830. The document includes Japanese and English versions of the judgement passed down from Tokyo District Court 20th Civil Chamber Head Judge Yasushi Kanokogi, Judge Hideki Kanazawa, and Judge Masaki Higuchi.
A bankruptcy procedure shall commence with regard to debtor MtGox Co., Ltd.
From the records of a case, it is recognized that the debtor is in a situation of insolvency.
Accordingly, this judgement is decided.
Further, together with this decision, it is also hereby decided as follows.
1. Bankruptcy trustee Attorney-at-law Nobuaki Kobayashi
Bankruptcy Trustee Room
MtGox Co., Ltd.
Shibuya 2-11-5, Shibuya-ku, Tokyo
2. Period for filing proofs of claims until November 28, 2014
3. Date of Creditors’ meeting for reporting the status of property July 23, 2014 1:30pm
4. Date for investigation of claims February 25, 2015 10am
Those with money stuck in Mt Gox will have until 11/28/14 to file a claim with Mt Gox. However, the investigation of the claims will not begin until 2/25/15, a full eight months from now. These claims must be filed in order for the claimant to be eligible for liquidation distribution. The claims will require claimants’ names and addresses to verify with company records. For unverified users that never gave Mt Gox their personal information won’t receive any notice from the company asking for a filing, and instead will have to wait for more information to come out. The detailed forms and information for filing proof of claims will be posted to Mtgox.com when they are ready. In the next eight months, Mr. Kobayashi will have the unsavory task of figuring out exactly “What in the Hell” happened at Mt. Gox. More specifically, Mr. Kobayashi will be working with “certain experts” to determine the “actual amount and value of bitcoins and cash of the Company.” In addition, the bankruptcy trustee will investigate the bitcoins and cash that are said to be lost; however, most are skeptical that anything will come of this. As of right now, it is not even guaranteed that there will be a “liquidating distribution” of Mt Gox’s liquid funds where Mt Gox claimants will be able to receive twenty cents on the dollar (calculated at a Bitcoin exchange rate of $150 BTC/USD). To keep this genre of fiasco from ever happening again, Bitcoiners need to demand Proof of Solvency, like Vault of Satoshi recently provided in fairly comprehensive manner.