Creditors Meeting on March 20, 2019

A continuation date for a creditors’ meeting was convened on March 20, 2019 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    CoinLab, Inc. has filed 1,690 billion yen in claims, but there appears to be an opinion that this is an unwarranted claim that would delay the civil rehabilitation proceedings.  What is the opinion of the trustee?

A1-1    The court will decide in the Assessment Decisions on Rehabilitation Claims whether the contents of the claims of CoinLab, Inc. are justified.  I will make efforts to expedite the civil rehabilitation proceedings.


Q1-2    The trustee does not approve the voting rights of CoinLab, Inc., but does the order of the Assessment Decisions on Rehabilitation Claim affect this?

A1-2    If CoinLab, Inc. exercises voting rights while there is a conflict over the filed claims, the court will ultimately determine the amount of voting rights.  We recognize that the amount of voting rights of CoinLab, Inc. is huge, therefore this is an important issue.


Q1-3    The deadline for submission of the Rehabilitation Plan is April 26, 2019, but how long does it actually take?

A1-3    It would be difficult to submit it by April 26, 2019, and it is not clear when it can be submitted. It is influenced by circumstances such as how to deal with the claims of CoinLab, Inc., the claims of creditors who did not approve, how long the Assessment Decisions on Rehabilitation Claims will take, and what to do after the procedure.


Q1-4    Is there a means of exercising voting rights by posting to the Office of the Rehabilitation Trustee, or an online system?

A1-4    This is under consideration.  I built the system, therefore I intend to use it to provide creditors with more convenience.  In any case, this will be decided in consultation with the court.


Q1-5    There are many creditors who are not native speakers of English.  Please consider drafting a report in English that is easy to understand.

A1-5    Under Japanese law, it is sufficient for the report to be prepared in Japanese, but the report is also prepared in English for creditors outside Japan.  As I recognize the room for improvement, I will consider taking measures to draft it in more understandable English.


Q2-1    Regarding Attachment 1 of the report, “Summary Table Regarding Approval and Disapproval of Non-Exchange-Related Rehabilitation Claims,” are the claims organized in units of currency?  I understand that the claims of CoinLab, Inc., do not constitute approval in full.

A2-1       Your understand is correct.


Q2-2    What are the prospects for the trustee on the Assessment Decisions on Rehabilitation Claims of CoinLab, Inc.?

A2-2    As this seems to be based on the Assessment Decisions on Bankruptcy Claims of the bankruptcy proceedings, the Assessment Decisions on Rehabilitation Claims will proceed promptly.  However, if CoinLab, dissatisfied with the order of the procedure, it will go to a lawsuit, therefore in this case it does not assume how long it will take.


Q3-1    According to the report in Section 2.1.(3), the Users who filed proofs of rehabilitation claims by posting them to the Office of the Rehabilitation Trustee will be informed of the results of the Rehabilitation Trustee’ approval or disapproval via e-mail.  When will this e-mail be sent ?

A3-1       I am currently preparing it, but I think it will not take much time.


Q3-2       Will the e-mail be sent to the creditor or the agent of that creditor ?

A3-2    I will send the e-mail to the contact e-mail address stated in the proof of rehabilitation claim forms.


Q3-3    Can a creditor who has filed a rehabilitation claim by posting to the Office of Rehabilitation Trustee not see the full text of the Statement of Approval or Disapproval on the Internet?

A3-3    I have considered this.  However, as it is difficult to build a system that makes it impossible for anyone other than the creditors to view it, it is not to be released on the Internet.  Please be informed that it will be possible to inspect and copy it in the court room.


Q4          What is the policy to deal with creditors who did not submit their proof of claims?

A4          This is under consideration.


Q5       According to Report 1.2, “the cryptocurrencies split from BTC of the Rehabilitation Debtor belong to the estate of the Rehabilitation Debtor, and will be a source of distribution to rehabilitation creditors,, will the cryptocurrencies split from BCH also be a source of distribution?

A5          If there is market value, it will be used as a source.


Q6-1    Does the trustee have anything to do with the policy of the Rehabilitation Plans aside from the claims in the Assessment Decisions on Rehabilitation Claims?  For example, whether there is a business transfer or dividend?

A6-1    This is under consideration. However, it is difficult to transfer a business, etc., as it constitutes the understandings of the trustee, and it is a key point as to whether the payment is based solely on money or on the payment by BTC.  If I pay by BTC, I can not use the blockchain to pay.  One method is where BTC is transferred to an exchange, the creditors are users of the exchange, and BTC can be delivered to the user’s account at the exchange.


Q6-2       If the trustee will sell BTC in the future, please disclose the information thereon.

A6-2       If it is necessary to sell BTC, I will discuss it with the court and consider.


In the middle of the meeting, the trustee asked the creditors whether the trustee should continue holding the BTC and making payments in BTC. Many creditors answered that they are in favor of holding the BTC and payment of BTC.


The next creditors’ meeting will be held on October 1, 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.