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Highlights
- For the civil rehabilitation plan to be passed, at least 50% of the voting shares would have to be in affirmation.
- If the plan does indeed go through, creditors will be partially compensated for the lost funds either in Yen, Bitcoin or Bitcoin Cash.
With the deadline to vote for civil rehabilitation plan ending on October 8, there are many questions that are hovering on the investors’ mind. What next? It seems to be the biggest question ever since the time to cast a vote got closed.
To give a brief background of the vote, for the civil rehabilitation plan to be passed, at least 50% of the voting shares needs to be in affirmation. The creditors who could not vote or had missed out on voting, their count will be considered as a no.
If the plan does indeed go through, creditors will be partially compensated for the lost funds either in Yen, Bitcoin or Bitcoin Cash.
Also read: Bitcoin’s mystery whale keeps everyone guessing: What we know so far
There is an expectation within the creditors that they have managed to achieve the required target of well above 50%. According to a Coin Desk report, it has been anticipated that the threshold limit of 50% has already been passed and a favourable result can be expected for the creditors.
The case
Japan-based Mt. Gox had filed for insolvency following a series of hacks. Mt. Gox, at one point in time, was the leading crypto exchange of the world with over 70% of transactions. Several investors lost their money due to the hack, and it was estimated that almost 850,000 Bitcoin had disappeared in 2014.
Mt. Gox did manage to retrieve a few of it, about 200,000 BTC and those cryptos will be used in the settlement process. If all goes well, then creditors can expect the company to start releasing the money post October 20. Investors would be banking for a BTC payout as the prices have soared substantially from the BTC prices then, which was just US $450.
Also read: Coinbase joins the NFT bandwagon, to launch its marketplace
Experts warn of a massive pump and dump
Market experts have also warned of a massive pump and dump following the US $6 billion payout. Experts believe that investors would be in a hurry to get their hands off from the newly attained bitcoins to book profit, considering today’s bitcoin prices are well over US $55000.
What if the civil rehabilitation bill is not passed?
Like they say, pray for the best and prepare for the worst, in case the bill doesn’t get passed, then we could well see another series of negotiations to reach a level ground on the issue. The battle saw several rounds of negotiations.
Creditors would be hoping for a positive outcome to ensure that they get their long-awaited dues.
