The deadline for voting on the civil rehabilitation plan for Mt. Gox has passed. What comes next?

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The proposed civil rehabilitation plan for creditors of Mt. Gox has now come to an end. What happens next for them?

Most cryptocurrency enthusiasts are probably aware of the Mt Gox hack, which was one of the largest cryptocurrency hacks in 2014. The Tokyo-based exchange was robbed of thousands of Bitcoin, leaving victims trapped in a maze of lengthy processes and delays.

The Tokyo District Court issued the civil rehabilitation plan order in February 2021, allowing claimants to vote on it. The four-month process began on May 31st, and creditors could vote either by mail or electronically.

As the voting period was ending, Adam Back, Blockstream founder urged the claimants to cast their votes. the urgency of the matter was that if more creditors failed to vote, the response will automatically be recorded as “no.”

If the plan is accepted, the creditors will get at least a partial compensation of their lost funds, which will be offered to them in Japanese yen, Bitcoin, and Bitcoin Cash.

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Now that the deadline has been passed what’s the result?

As per reports, an unnamed coordinator of the creditor’s group, MtGoxLegal noted that the creditors had reached out to the Tokyo District court representative and the Trustee to give them some indication as to whether or not the threshold of 50% has been crossed, but they did not receive any such assistance.

The source noted,

“If we had been able to get an update, say, after half of the voting period had passed, and that update indicated that the participation rate in the vote was worryingly low, then we could have tried to fundraise and allocate those funds to bring more attention to the issue.”

If the plan does not get approved, the creditors fear that the process would revert to Mt. Gox bankruptcy, which the CEO Mark Karpeles has already filed for.

The said coordinator added,

“It’s such a huge difference between what creditors receive under the civil rehabilitation plan, and what creditors would receive if we reverted to bankruptcy, so it’s difficult to see anyone voting against.”

The process has been lengthy and the creditors remained flustered given the years that have passed.

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