Mt. Gox Bankruptcy for 22 Billion Dollars?

Mt. Gox Bankruptcy for 22 Billion Dollars?

The 4th creditors meeting in Tokyo for the Mt. Gox bankruptcy case wrapped up today with a staggering report of claims. 2,663,398,225,570 JPY which is roughly worth 22 billion dollars was claimed in the report by creditors. The report came from the Tokyo District Court, Collegiate Section of the 20th Civil Division. Breakdowns of the numbers in Bitcoins and cash were not disclosed, the trustee is reviewing the content to determine the claim validity.

Also Read: Deadline for Filing MTGox Bankruptcy Claims Extended

Mt_Gox_Money_Down_The_Drain_WideIt was a dismal day in Tokyo and the weather wasn’t the greatest. The creditors meeting was small and roughly had about thirty guests, and the least number of foreign creditors. There wasn’t much of a crowd there consisting of creditors and no media circus to be found. This event was following the arrest on August 1, of the former Mt. Gox CEO, Mark Karpeles for suspicion of corporate embezzlement and other laundering charges. Karpeles is currently being detained by Japanese authorities and not much has been revealed thus far.

the-statements-from-people-who-lost-their-money-on-mt-gox-are-seriously-sad

Today the administration of the bankruptcy held its meeting and gave out formal reports. Kraken and the Mt. Gox website have offered the necessary steps to follow to make a claim and try to recover losses. After all the bankruptcy claims were established a September date was announced for the bankruptcy committee to review and distribution of funds can begin.

Mt-Gox.jpgInterestingly enough the report was the total amount of claims filed online at the end of August. The amount reported today was colossal, roughly 2,663,398,225,570 JPY in reported loss claims. This is equal to 22 billion in U.S. Dollars and over 7 times the current market cap of Bitcoin. 95% of these were filed by three creditors alone. So, out of 24,704 creditors who filed, 24,701 creditors are claiming a total amount of JPY129,881,014,285 and the rest (JPY2,533,517,211,285) by three creditors. These astounding claims have the public, redditors and media in a frenzy trying to make sense of it all.

The administrator of the creditors meeting Mr. Kobayashi said the amount claimed was unexpected, but also reiterated that the act of filing does not equal to his approval. He may disapprove the amount claimed by large three as he did with the claims of other two big creditors, Coin Lab and Tibanne in the amount of JPY5,600,000,000 and JPY4,400,000,000 respectively. Kobayashi stated in the pdf report:

“I continue to strive for the possible collection of assets,” Nobuaki Kobayashi

MtGoxKobayashi also stated that he and Japanese authorities are still investigating the mysterious loss of Bitcoins. With the ongoing investigation Kobayashi extended the date for the next creditors gathering. These claims filed by creditors contained a list of assets, as well as income and loss expenses. The fifth creditors’ meeting will be held on February 17, 2016.

One must wonder how three creditors can claim billions of dollars to this bureau. The total amount of 22 billion seems a bit ludicrous, but the case of Mt. Gox has been the whole time. Bitcoin.com will be following the story as it develops and will inform our readers if we find anything new.

What do you think of the 22 billion dollar bankruptcy claim? Let us know in the comments below.

Images courtesy of Redmemes, Pixbay, and the associated press.