MtGox trustee provides update on examiner’s petition investigation

By Caroline Salls

Pittsburgh, March 7 – MtGox Co., Ltd. bankruptcy trustee Nobuaki Kobayashi said in a report released Wednesday that, based on the report of an examiner who was charged with investigating whether the company’s bankruptcy petition should be dismissed, MtGox’s bankruptcy proceedings will continue unless the court decides to begin civil rehabilitation proceedings.

If the court allows the bankruptcy case to proceed, the trustee said he will continue to have the right to administer and dispose of the bankruptcy estate as before.

Kobayashi said “the detailed schedule of the distribution in the bankruptcy proceedings will inevitably be affected, among others, by the possibility of the commencement of civil rehabilitation proceeding and each creditor’s response to the acceptance or rejection of his or her claim.”

As a result, the trustee said the possibility of a distribution being made and the timing and method of any distribution have not yet been determined.

According to the trustee’s investigation, Kobayashi had secured as of March 6 ¥44,170,278,921 in MtGox’s accounts, reflecting an increase of ¥42,956,000,000 since the ninth creditors’ meeting.

However, since the investigation of the status of the holdings of bitcoin is still ongoing, Kobayashi said the reported list of assets and balance sheet do not contain bitcoin and other cryptocurrencies held by the bankrupt entity.

In addition, the trustee said he sold some of the estate’s bitcoin and bitcoin cash since the ninth creditors meeting to “secure a certain amount of money for distribution resources.”

Specifically, Kobayashi said he sold 35,841.00701 bitcoin for ¥38.23 billion and 34,008.00701 in bitcoin cash for ¥4.76 billion.

The amount of bitcoin managed by the estate as of March 5 was 166,344.35827254, and the amount of bitcoin cash managed as of that date was 168,177.35927254.

MtGox is a Tokyo-based online bitcoin exchange operator. The company filed for Chapter 15 bankruptcy on March 9, 2014 in the U.S. Bankruptcy Court for the Northern District of Texas under case number 14-31229.

© 2015 Prospect News.
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