Mt. Gox start Civil Rehabilitation Proceedings, BTC sell-off halted

The obselete Bitcoin exchange Mt.Gox has now officially entered a civil rehabilitation proceeding; the news was announced by officials June 22.

Confirmation of this news comes in a statement along with documentation by Nobuaki Kobayashi acting as a civil rehabilitation trustee.

Kobayashi also worked on reimbursing users of Mt.Gox after losing their money; he sold off vasts amounts of the Bitcoin reserves to do so. With every transaction, the market moved further down a deep hole.

“The power and authority to administer and dispose of MTGOX’s assets are 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,” Kobayashi wrote in the documents.

However, due to the bankruptcy proceedings now being halted as part of the civil rehabilitation, Kobayashi will not sell any further bitcoins, with users set to receive compensation in BTC instead of fiat currency as originally intended.

With these recent proceedings now taking place, all bankruptcy activities have been halted, Kobayashi will not sell any more of the Bitcoin reserves.

“…In the civil 2 rehabilitation proceedings in this matter, claims seeking a refund of Bitcoins (“Bitcoin Claims”) will also not be converted into monetary claims after the commencement of the civil rehabilitation proceedings,” Kobayashi continues

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