A Mt. Gox rehabilitation proposal that deals with reimbursement to affected investors will conclude voting on Friday, Oct 8. A minimum of over 50% is required for the proposal to pass.
A notice on the Mt. Gox website shows that rehabilitation voting to return capital to investors will end on Oct. 8. The claimants are voting on whether the reimbursement terms will suffice, following losses that began with hacks that lasted until 2014. In order to pass, a majority of over 50% will have to vote in favor of the terms.
The rehabilitation plan was first released on May 31, 2021, after the Tokyo District Court first issued the draft in February 2021. Whether it passes or not, the vote will put an end to a long-standing court case that sent shockwaves through the market. The refund may amount to a total of 150,000 bitcoins.
Mt. Gox is an infamous name in the cryptocurrency space. Originally one of the giants in the crypto world as it was an early entity in space, the exchange collapsed after a notorious hack. It was the largest bitcoin exchange at one point, accounting for over 70% of all bitcoin transactions.
In 2014, Mt. Gox announced that a large amount of bitcoin, $450 million worth, had likely been stolen, and the exchange would be shutting down. This was the biggest incident up until that point and sent bitcoin’s value down sharply. It stands as a watershed moment in the market and is frequently referred to as a case study.
Mt. Gox a lesson for the crypto market
As the biggest exchange at the time, brought down to insolvency by hacks, Mt. Gox, has served as an instructive lesson for those in the crypto space. While it did function at a very early time in the market, Mt. Gox showed that improper security measures led to its downfall.
Mt. Gox was originally developed by Ripple and Stellar Lumens co-founder Jed McCaleb, who sold the platform to Mark Karpeles in Mar. 2011. A few months later, individuals noted that user information was being sold. Despite suffering from hacks and even introducing new measures, Mt. Gox continued on its path to become the biggest bitcoin exchange at the time.
By 2014, numerous actions by regulatory authorities and complaints from users, as well as stolen bitcoin, had done enough to cause the demise of the exchange. It has been a part of several court proceedings since.
The incident spurred exchanges to employ stronger security measures and brought much attention to the crypto market. Crypto platforms these days are far more focused on protecting their data, lest the same fate befalls them.