What a mess !
Mt Gox Creditors Warn Mass Sale Could Put Bitcoin Fork Prices At Risk
https://www.coindesk.com/mt-gox-creditors-warn-mass-sale-could-put-bitcoin-fork-prices-at-risk"The trustee’s document indicates that it has approved claims for 802,521 BTC (worth $3,233,256,500), 792,296 BCH ($124,953,000), $38,165,664 in U.S. dollars, and other amounts in various fiat currencies.
There’s an obvious issue, however. There is not enough secured cryptocurrency still in the Gox coffers to cover approved claims for BTC and BCH; neither is there enough fiat currency to cover the cryptocurrency pro rata in cash at current valuations.
And it’s not yet clear how Kobayashi will allocate the funds when the payouts to creditors eventually start. So far, he has set a date of April 26, 2019, as the submission deadline for a rehabilitation plan proposal, however.
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Other currencies listed include BitcoinX (BCX), Bitcoin Diamond (BCD), Lightning Bitcoin (LBTC), Bitcoin Private, Super Bitcoin (SBTC), Clams, Bitcoin Interest, Bitcore (BTX) and Bitcoin Atom.
The group believes that the amount of additional cryptocurrency would be too much for any exchange to handle and it would be extremely complex to manage the private keys for such coins.
The draft adds:
“We note that the volume of each of these coins held by the Trustee, in almost all cases, is significantly higher than the global daily traded volumes of these currencies, therefore we are concerned that any attempt by the Trustee to sell them en masse on the open market would result in a downward movement of the value and also not be in the creditors interests.
As a result, it proposes that the keys be auctioned off after the BTC and BCH has been distributed or moved to a secure location.
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In the draft proposal drawn up by Mt. Gox Legal goes on to list other items set out how the member creditors would wish to see Kobayashi move forward.
Firstly, funds held by the Gox estate in fiat currency should be paid out at the same rate as would have been the case under bankruptcy. “This includes, where legally appropriate, the inclusion of interest payments,” the draft states.
Mt. Gox Legal also said it anticipates that after distribution of the cash claims there will be a mix of cash and cryptocurrencies remaining. That should be distributed “pro-rata to bitcoin claims,” it said, while it suggested that creditors be offered the choice of receiving cryptocurrency either in accounts with exchanges or to private wallets.
The trustee should also not undertake further sales or purchases of bitcoin or bitcoin cash as part of the civil rehabilitation plan, as has happened in the past. Additionally, shareholders Karpeles, Jeb McCaleb and Tibanne should not receive any payout in fiat or cryptocurrency or any benefit in kind.
Mt. Gox Legal intends to present the plan to the trustee on March 22."
CONCLUSION : Next few hours are critical !
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