“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.
“This is the best news in this case since years,” wrote one man on the MtGox Creditors Telegram group, just after someone posted the MtGox trustee’s June 22 announcement that the Tokyo District Court approved MtGox’s move.
But a more tempered response came from Josh Jones, CEO and founder of Bitcoin Builder Inc., whose claim towers at 43,768 bitcoins—though he’s quick to point out some belongs to him, and some to his site’s users. Jones’s group is the second-largest MtGox creditor, right behind New Zealand’s bankrupt Bitcoinica exchange with 64,673 bitcoins.