On September 26, 2018, a creditors’ meeting was convened for the purpose of reporting on the status of property as part of the civil rehabilitation proceedings.

For your reference, the questions asked by some of the creditors and the answers given by the trustee in the meeting are as follows:

Q1-1: Does the trustee have any knowledge about the situation of the overseas assets of MTGOX?

A1-1: I do not have any knowledge about the situation.

Q1-2: Has the trustee gained any information from the US Department of Justice on the disappearance of BTC?

A1-2: I only know the information that is available on the internet.

Q1-3: How can the creditors who have filed proof of Rehabilitation Claims by off-line confirm the status of their claims?

A1-3: I will reply to the e-mail stating that the claim has been received. However, it is expected that it will take time to reply because a large amount of documents have been received.  In the future, we will prepare a communications system and will be able to respond quickly.

Q1-4: Can rehabilitation creditors receive payment in BTC based on the rehabilitation plan instead of payment in Japanese yen (“JPY”)?

A1-4: Whether rehabilitation creditors receive payment in BTC or JPY is yet to be determined because this depends on the contents of the rehabilitation plan (which is still not formulated or drafted). However, at this time, I will take into account that payment in BTC includes the problems of the risk of a BTC crash, security of rehabilitation creditors and requiring user registration of the exchange.

Q2: In the bankruptcy proceedings, although it was filed in the name of the company, it turned out to be an individual account. In the rehabilitation proceedings, can I file under the individual name?

A2: Because this is a specific question based on a creditor’s specific situation, I cannot answer it here at this meeting. As a general rule, I will approve or reject a claim based on the customer information possessed by MTGOX, so if the creditors can prove that the person who made the claim is a creditor, we will approve it.

Q3: Can rehabilitation creditors receive interim payment?

A3: I can pay rehabilitation creditors only after the rehabilitation claims are determined and the rehabilitation plan is approved by creditors. However, I would like to consider including a provision regarding interim payment in the rehabilitation plan.

Q4-1: Can the trustee get support from Kraken in regard to measures against security problems for payments?

A4-1: We received support from Kraken in bankruptcy proceedings in the past, so we would like to receive support in these civil rehabilitation proceedings too. On the other hand, there are other exchanges apart from Kraken.  I will consider residential housing areas and usability of creditors.

Q4-2: What kind of means are there for exercising voting rights in regard to the rehabilitation plan?

A4-2: I would like to consider means in which as many creditors as possible can vote within the legally possible range.

Q5-1: To what exchanges did the trustee sellBTC?

A5-1: Due to security concerns, I am not able to disclose which exchanges sold BTC.

Q5-2: Does the trustee plan to sell the BTC in the future?

A5-2: This is also related to whether or not the repayments will be made with BTC. There is also the risk of a crash due to holding the BTC for a long time, so I would like to discuss this with the court / Examiners.

Q6-1: Is there a possibility that MTGOX will rebuild the exchange?

A6-1: I do not consider that MTGOX will restart the business.

Q6-2: What exchange provided advice to the trustee regarding the sale of BTC?

A6-2: Due to security concerns, the trustee cannot disclose specific names.

Q7-1: Are creditors who have not filed a claim in the bankruptcy proceedings or rehabilitation proceedings also eligible for payment?

A7-1: Because there is a system called “self-approved claim” under civil rehabilitation law, customers understood to be creditors of MTGOX will be eligible for payment even if they do not file a claim.

Q7-2: Are there opportunities for creditors to express their opinions on the proposed rehabilitation plan?

A7-2: I will consider opinions.

Q7-3: According to the balance sheet, “about 69.7 billion yen” is recorded as “cash and deposit”, and is this amount also included in trust assets of 15.8 billion yen?

A7-3: This amount is included.

Q8-1: According to the third page of the English Report under paragraph 1 of Article 125 of the Civil Rehabilitation Act, it is stated that “… I understand that the cryptocurrencies split from BTC of the Rehabilitation Debtor belong to the Rehabilitation Debtor”, does the trustee intend to distribute the cryptocurrencies split from BTC to shareholders?

A8-1: This is property belonging to the rehabilitation debtor and becomes a source of payment to creditors.

Q8-2: Similarly, “… … the list of Assets and the Balance Sheet do not show BTC or cryptocurrencies split from BTC held by the Rehabilitation Debtor”, but shouldn’t this be shown?

A8-2: This is just a problem with the method described in the table. The trustee will consider the described method.

Q9-1: Is the purpose of establishing a trust to preferentially secure the interests of monetary creditors?

A9-1: Unless securing the interests of monetary creditors, bankruptcy proceedings are more advantageous for monetary creditors than civil rehabilitation proceedings. Then, since doubts arise when starting civil rehabilitation proceedings, securing the interests of monetary creditors is necessary.

Q9-2: I do not want the trustee to sell the BTC. There is also the risk of a crash, but the value of BTC may rise as well.

A9-2: I understand your opinion, but there are also creditors who want me to sell the BTC.

At the end of the meeting, the trustee asked the creditors whether the BTC should be sold early or whether the trustee should continue holding the BTC and making payments in BTC. Most creditors answered that they are in favor of holding the BTC and payment of BTC.

The next creditors’ meeting will be held on March 20, 2019. However, the creditors’ vote on whether or not to approve or disapprove the rehabilitation plan (which is yet to be proposed, announced or disclosed) might NOT yet be conducted at the said next meeting.