It looks like the $BTC market is about to get a serious favor from Mt. Gox and the ongoing bankruptcy proceedings.
The issue that has most plagued the crypto markets, via Mt. Gox, has been the massive selling pressure brought about by the now-defunct exchange as it dumped massive amounts of $BTC on the markets to satisfy the terms of its bankruptcy mandates.
Per a court filing today it looks like that is about to end, and the final ‘distribution’ process will happen ‘in-kind’ via a process known as Civil Rehabilitation. See below:
“Announcement of Commencement of Civil Rehabilitation Proceedings
As was announced on November 29, 2017, in the “Announcement Regarding Petition for Commencement of Civil Rehabilitation Proceedings Filed by Some of the Creditors”, some of the creditors of MTGOX Co., Ltd. (‘‘MTGOX’’) filed a petition for commencement of civil rehabilitation proceedings against MTGOX with the Tokyo District Court on November 24, 2017.
The petition was heard, and at 5:00 p.m. on June 22, 2018, the Tokyo District Court issued an order of the commencement of civil rehabilitation proceedings for MTGOX. As a result, the previously ongoing bankruptcy proceedings were stayed. In addition, simultaneously with the order of the commencement of civil rehabilitation proceedings, an administration order was issued by the Tokyo District Court, and I have been appointed Civil Rehabilitation Trustee (In the Matter of a Petition for Commencement of Civil Rehabilitation Proceedings, Tokyo District Court 2017 (sai) no. 35).
The power and authority to administer and dispose of MTGOX’s assets is still vested exclusively in me, and I will implement the civil rehabilitation proceedings, including the administration of MTGOX’s assets and the investigation of claims, subject to the Tokyo District Court’s supervision.
I kindly ask for your understanding and cooperation in this matter.
The schedule going forward for the Civil Rehabilitation Proceedings is as follows:
- (1) Meeting for reporting the status of property and submission deadline for a report under Article 125 of the Civil Rehabilitation Act:
September 26, 2018
- (2) Deadline for Filing proof of rehabilitation claims: October 22, 2018
- (3) Submission deadline for inventory of assets and balance sheets: October 27, 2018
- (4) Submission deadline for statement of approval or disapproval: 1
January 24, 2019
- (5) Period to examine Proofs of rehabilitation claims:
From January 31, 2019, to February 7, 2019
- (6) Submission deadline for proposed rehabilitation plan: February 14, 2019
*This schedule is subject to change as the civil rehabilitation proceedings progress.
*We plan to post detailed information such as the form of a proof of rehabilitation claims on this website: https://www.mtgox.com/.
Further, due to the stay of the bankruptcy proceedings, MTGOX bankruptcy claims filing system (the “System”), which was being provided on its website, has been temporarily suspended. As in the bankruptcy proceedings, the Civil Rehabilitation Trustee is expected to accept the method of filing a proof of rehabilitation claim through the System in the Civil Rehabilitation Proceedings as well. Therefore, please take note of your username and password registered on the System.
For the inquiries on Commencement of Civil Rehabilitation Proceedings, please see the Attachment, “Answers to Frequently Asked Questions.”
In addition, the following call center has been set up for this matter. However, please note that, at this time, it is difficult to answer questions other than those explained in the Attachment.
Telephone number: +81-3-4588-3922
Operating hours: Monday through Friday, 10:00 a.m. to 5:00 p.m. (Japan time)
*All inquiries should be made through the telephone number above. Please refrain from making inquiries to the Office of the Civil Rehabilitation Trustee, whether by email or otherwise, as it is difficult to respond to such inquiries.
You will be informed of any relevant information, where necessary, through the appropriate channels, including this website.
I kindly ask for your continued understanding and cooperation in the civil rehabilitation proceedings.
End of document”
What the statement clearly shows is that mass amounts of block sales are to end and that liquidations will no be handled as distributions of actual $BTC instead of USD.
This is a fantastic development for the crypto markets as it removes an ever-present and ongoing cloud that has hung over $BTC in 2018. We may even see an uptick in the markets as this news begins to move across the ‘crypto globe’.