- MtGox sells off $230 millions’ worth of Bitcoin during bankruptcy trial.
- The money was raised to pay off former users of the exchange.
- After establishing a trust to pay off debts, the company has an extra JPY 10 million (~$100,000) over from the sale.
Bitcoin is now being used to pay off creditors in the event of bankruptcy. A recent example of this was with MtGox, a former Japanese Bitcoin exchange currently undergoing bankruptcy proceedings.
In a court document dated on the 25th of September, the steps taken by the firm’s bankruptcy lawyer to secure the interests of their former users are outlined. The firm sold off some 25,000 BCH and 24,000 BTC in order to raise funds to pay off debts.
In total, the infamous exchange was able to raise JPY 25,975,000,000. All creditors who had brought proof of interest to the court prior to the creation of the trust would then have their debts settled. After establishing the trust, MtGox was allowed to keep some JPY 10,000,000 – or about $100,000.
The History of MtGox Co.
MtGox of course is one of the best known exchanges in crypto history. A few years ago, the company behind the exchange was forced to liquidate when it was revealed that they had lost over 800,000 bitcoin belonging to customers. The loss was blamed on hackers, though the company has been able to recover over 200,000 of the lost coins.
MtGox was at one time the world’s largest Bitcoin exchange in the world. After the bankruptcy they filed for protection from creditors from the Japanese courts.
Why this is relevant
Beyond MtGox having once been the largest exchange in crypto, it was also an Asian exchange. Many of the largest crypto projects are Asian, and investments in crypto have also disproportionately come from Asian investors. People living in Asia have been overwhelmingly enthusiastic in investing in cryptocurrency with citizens in China even creating foreign entities to get around the Chinese ban on cryptocurrency investments.
