The defunct cryptocurrency exchange Mt Gox that became a victim of a massive Bitcoin hack in 2014, has been ordered by the Tokyo District Court to start paying its customers back. The losses will be paid back entirely in Bitcoin. The court ordered the repayment under civil rehabilitation instead of bankruptcy charges.

If the order came in accordance with bankruptcy laws, Mt Gox would have to pay the victims in the national currency, i.e., yen. In that case, the payments would have been equal to the “non-monetary claims” that the customers made.

When the hack took place, one Bitcoin was worth $483. Today, the value is over $6,000. This could good for the customers who will now receive a much higher valuation of their coins. Note that a civil rehabilitation leads to compensation of the original assets, which means that the users will not receive equivalent national currency value of their holdings, but the payment in the original asset.

For example, if someone lost ten BTC due to the Mt Gox hack, they would have received an equivalent value of the Bitcoins in yen, i.e., $483 x 10 Bitcoins, converted into yen, using the price of Bitcoin at the time of their bankruptcy. Because of the civil rehabilitation order, they will now get the ten Bitcoins at the current market value, totaling $6,000 x 10 Bitcoins.

The order did not specify when the amount would be paid back. However, the customers of the exchange will have to file official claims by October to be entitled to the compensation. They will also need sufficient documentation to prove that their coins were stolen.

Earlier this week, Nobuaki Kobayashi, who is a trustee of the exchange, announced that Mt Gox would start paying back the amount by next year. He said that the details of the repayment would be available at a September 26 meeting in Tokyo. Additionally, he said that payments would be made only in Bitcoins.

Mt Gox Asked to Pay Losses in Bitcoin was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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