News Bitcoin Mt. Gox creditors will soon benefit from $9 billion payback — their BTC is over 10,000% more valuable than when it went missing

[Admin]

Mt. Gox begins paying back users, ten years after it began collapsing in February 2014.

Bitcoin Mt. Gox creditors will soon benefit from $9 billion payback — their BTC is over 10,000% more valuable than when it went missing : Read more

 

[Air2004]

How do they decide who's bitcoin has been recovered and who's hasn't? I would think all creditors would split what ever coins were recovered equally.

Which brings me to another question... I thought the whole point of bitcoin was the anonymity aspect of the coin. So much for that selling point. /s

 

[DougMcC]

How do they decide who's bitcoin has been recovered and who's hasn't? I would think all creditors would split what ever coins were recovered equally.

Which brings me to another question... I thought the whole point of bitcoin was the anonymity aspect of the coin. So much for that selling point. /s

I assume (but don't know) that the coins were actually held 'on deposit' by mtgox. So that they could loan/invest them. Therefore mtgox knows who held how much, but the losses were anonymized. I expect they would therefore repay proportionally (what I assume you meant by 'equally'). E.g. if they recovered 10% of the coins, everyone gets 10% of their amount of deposited coins back.

 

[Air2004]

I assume (but don't know) that the coins were actually held 'on deposit' by mtgox. So that they could loan/invest them. Therefore mtgox knows who held how much, but the losses were anonymized. I expect they would therefore repay proportionally (what I assume you meant by 'equally'). E.g. if they recovered 10% of the coins, everyone gets 10% of their amount of deposited coins back.

Proportionally, yes. Those that are owed would split the recovered coins equally, unless it can be proven that X amount of the recovered coins came from investors A,B and C. All recovered coins will be split equally. Now, does that mean some investors will make out better than others (losses across the board aren't equal) under the model I assume, sure, but that's because I'm not sure how this sort of thing will work out and that's the fairest thing I can think to do.

 

[jp7189]

Proportionally, yes. Those that are owed would split the recovered coins equally, unless it can be proven that X amount of the recovered coins came from investors A,B and C. All recovered coins will be split equally. Now, does that mean some investors will make out better than others (losses across the board aren't equal) under the model I assume, sure, but that's because I'm not sure how this sort of thing will work out and that's the fairest thing I can think to do.

Generally, the small investors are part of a class action wherein each creditor is paid a proportional amount of their total claim. There are a few larger creditors which decided to pursue their own lawsuits and are not part of the class. Their payouts are decided separately and originally their amounts would be deducted before the class gets paid from the remainder. However, the individual suits are taking so long that the class was broken in to two pieces. 1. An early payout which proceeds on assumptions before the all other suits are resolved, and 2. A late payout which proceeds after all other suits are concluded. Those in the class are able to choose which they would like.