Blockchain News

Mt Gox has been ordered to pay back the money – totally in Bitcoin

The once-flourishing cryptocurrency trading exchange has been issued with a court order to repay the money back to victims who lost funds in the 2014 Bitcoin hack. The order is now under the civil rehabilitation and not under bankruptcy charges.

Mt Gox, the cryptocurrency exchange which suffered ‘the most famous Bitcoin hack ever’ in 2014, has been ordered by the Tokyo District Court to start paying back victims for the losses.

The order comes in line in accordance with the civil rehabilitation law and not under the rules of bankruptcy. If the victims were to be reimbursed under the bankruptcy proceeding, they would receive compensation in the national currency which would be equal to that of “non-monetary” claims based on value at the time of bankruptcy. This means that if we took the value of the loss at the time of the attack, the payout would amount to around $483 USD per Bitcoin, while if we look at today’s value, one Bitcoin is worth $6127 USD.

If this is, in fact, the way in which investors will receive compensation, it might be in their favor as they might have chosen to trade their assets at a lower value.

And since civil rehabilitation proceedings ensure the recompensation in the original assets – rather than in the equivalent national fiat value  – it entitles the victims to claim back lost Bitcoins making the triple-digit percentage back on what they had lost. Although no official schedule for proceedings for the payments has been set yet, it has been said that investors who lost out in the hack will need to file official claims by October of this year in order to be eligible to claim recompensation.