“You can open the champagne now.”
Joyful celebration lit up online groups for creditors of the bankrupt MtGox exchange on June 22, when a Japanese court decided to move the company into “civil rehabilitation,” a new legal process that promises to deliver a windfall of bitcoin for creditors.
It’s spectacular news for the 24,750 approved MtGox creditors, because based on today’s bitcoin value they will end up with more money that they actually had at the time MtGox went into bankruptcy. The original bankruptcy proceeding, by law, would have paid creditors just $483 per bitcoin—the value when MtGox went bankrupt in 2014. Under civil rehabilitation, they will receive bitcoins, which are now trading at around $6,000 each, plus their share of whatever cash remains in the MtGox estate. While they missed out on the peak price of almost $19,000 last December, this is still more moolah than they ever dreamed back in 2014.