Mt. Gox users have been waiting seven years to get compensated for the bitcoin they lost in the 2014 hack. Now, Mr. Nobuaki Kobayashi, Mt. Gox’s Trustee, has submitted a rehabilitation plan to a court in Tokyo, Japan.
The Trustee controls 150,000 bitcoin, which he is tasked with distributing among about 20,000 harmed users of the defunct crypto exchange, who lost a total of 850,000 bitcoin in 2014.
Kobayashi, a well-known Japanese bankruptcy lawyer, said in a statement, “The Tokyo District Court and an examiner will review the draft rehabilitation plan and determine whether to proceed with the rehabilitation proceedings.” Mt. Gox´s Trustee promised he would soon explain the details of the proposed arrangement “to the relevant parties.”
The bitcoin under Kobayashi’s control is worth approximately $2.9 billion at current market prices. People with valid claims against Mt. Gox are wondering how much they will get, based on the amount of bitcoin they lost during the hack.
Prior to submitting the draft rehabilitation plan to the court, Mt. Gox Legal had posted a formula to calculate potential repayments.
Formula to Estimate Repayment
- $440 per coin
- $0 damages (damages don’t apply to bitcoin, only to fiat currency)
- 14.9 percent of the bitcoin you controlled plus the same amount of bitcoin cash
Based on Mt. Gox Legal’s formula, 10 bitcoin lost during the hack could now be worth about $62,000.
When Mt. Gox collapsed, it was the largest exchange in the world, handling 70 percent of bitcoin trades. The crypto community has adopted the term ´goxxed´ following the 2014 fiasco. According to Urban Dictionary, getting goxxed means, “Waking up and realizing your financial speculation just went south...and you should have known better.”