[Translation]
September 25, 2018
To whom it may concern:
Civil Rehabilitation Debtor: MtGox Co., Ltd.
Civil Rehabilitation Trustee: Attorney-at-law Nobuaki Kobayashi
Inquiries: Call Center (+81-3-4588-3922)
Announcement on Measures to Secure Interests of Bankruptcy Creditors
In the bankruptcy proceedings (the “Bankruptcy Proceedings”) of MtGox Co.,
Ltd. (“MTGOX”), the examination report dated February 28, 2018, required as theconditions of commencement of the Civil Rehabilitation Proceedings that “measures aretaken to secure the interests that are expected to have already been obtained, in light ofthe size of the bankruptcy estate that has been established in the Bankruptcy
Proceedings, by all creditors who filed proofs of claims for the pending bankruptcy caseagainst the bankrupt entity, especially creditors whose bankruptcy claims are monetaryclaims, before the order of commencement of Civil Rehabilitation Proceedings is made,i.e., before the stay of the Bankruptcy Proceedings.”
As a result of consultation with the court and the examiner based on theexamination report, the bankruptcy trustee took a certain measure before the order ofcommencement of Civil Rehabilitation Proceedings as a measure to secure interests
expected to have already been obtained by the bankruptcy creditors in the Bankruptcy
Proceedings.
I hereby notify you of the measures taken by the bankruptcy trustee.
I
Measures to Secure Interests for all Bankruptcy Creditors who filed
Proofs of Bankruptcy Claims
As a measure to secure interests expected to have already been obtained by allbankruptcy creditors who filed proofs of bankruptcy claims in the Bankruptcy
Proceedings, the bankruptcy trustee sold a certain amount of bitcoin (“BTC”) andbitcoin cash (“BCH”) that belonged to the bankruptcy estate, during the period from the10th creditors’ meeting in the Bankruptcy Proceedings (i.e., from March 7, 2018) to thecommencement of Civil Rehabilitation Proceedings, and secured a certain amount ofmoney for the bankruptcy estate (the “Sale”).

11.

Summary of Sale
The quantities sold under the Sale and the amounts paid into the bankruptcy
trustee’s account are shown below.
Type ofcryptocurrencies

Quantity soldAmounts paid intobankruptcy trustee's account

BTC

24,658.00762 BTC

JPY 22,561,004,011

BCH

25,331.00761 BCH

JPY 3,414,698,341

Total amountJPY 25,975,702,352

2.

Grounds for Implementing Sale
As a result of consultation with the court and the examiner, the bankruptcy
trustee (i) determined that it was necessary and appropriate to procure a suitable amountof money to secure the interests that the creditors for the principal amount and delay
damages of the determined and undetermined bankruptcy claims that have been filed in
the Bankruptcy Proceedings (approximately JPY 73,373 million in total, including BTC
claims (i.e., claims such as those for the return of cryptocurrency split from BTC;
hereinafter the same) and monetary claims) which were expected to have alreadyobtained in the Bankruptcy Proceedings, and (ii) implemented the Sale.
As a result of the Sale, the balance in the bankrupt trustee’s account wasapproximately JPY 70,059 million immediately prior to the establishment of the trust inaccordance with the Trust Agreement described below. As mentioned below, from theamount of approximately JPY 70,059 million, the bankruptcy trustee established a trustof JPY 15,894,530,915.
IIMeasures to Secure Interests of Monetary Creditors who Filed Proofs ofBankruptcy Claims
The bankruptcy trustee created the structure of a trust (the “Trust”) and aguarantee by entering into a trust agreement (the “Trust Agreement”) and a guarantee
entrustment and guarantee agreement (the “Guarantee Entrustment and GuaranteeAgreement”) with Sumitomo Mitsui Banking Corporation (“SMBC”) as a measure tosecure interests expected to have already been obtained by the monetary creditors whofiled proofs of bankruptcy claims in the Bankruptcy Proceedings.
1.
Summary of Trust Agreement and Guarantee Entrustment and Guarantee
Agreement

2

The Trust Agreement and Guarantee Entrustment and Guarantee Agreement aresummarized below.
(1)
Summary of Trust Agreement
Settlor and beneficiary:
The bankruptcy trustee, and after commencement of
the Civil Rehabilitation Proceedings, the civil
rehabilitation trustee
Trustee of the Trust:
SMBC
Trust assets:
JPY 15,894,530,915 as of the date of establishmentof the trust which includes the amount expected to beappropriated for various expenses (the “TrustAssets”)
Purpose of Trust:The settlor entrusts money to the trustee, and thetrustee provides, among others, guarantees for theobligations regarding the monetary claims for which
proofs of bankruptcy claims were filed, which areonly paid out of the Trust Assets for the sake of thebeneficiaries. The monetary claims subject to suchguarantee are limited to those accepted under theCivil Rehabilitation Proceedings and others;
hereinafter, the same.
(2)

Summary of the Guarantee Entrustment and Guarantee Agreement
SMBC (as the trustee of the Trust) provides, among others, guarantees for theobligations regarding the monetary claims for which proofs of bankruptcy claims werefiled jointly and severally with the bankruptcy trustee (or the civil rehabilitation trustee
after the commencement of the Civil Rehabilitation Proceedings), which are only paidout of the Trust Assets.
The Guarantee Entrustment and Guarantee Agreement shall fall under theagreement for third parties, with the bankruptcy trustee as the promisee, SMBC (as thetrustee of the Trust) as the promisor, and monetary creditors who filed proofs ofbankruptcy claims as the “third party beneficiaries” as provided under Article 537 of the
Civil Code.
2.
Structure Chart of Trust Agreement and Guarantee Entrustment andGuarantee Agreement
3

The structure chart of the Trust Agreement and the Guarantee Entrustment andGuarantee Agreement may be simplified as follows:

SMBC

Trust Assets
(1)

(2)

Establishment of theSMBC (as the trustee of thetrust in accordance with the TrustTrust)’s guaranty under the TrustAgreement

AgreementandIndemnityandGuarantee Entrustment Agreement (*)
Bankruptcy Trustee（Civil Rehabilitation Trustee）

MTGOX

Monetary creditors who filed
Monetary claimsproofs of bankruptcy claims(*) As mentioned below, the beneficiaries of SMBC (as the trustee of the Trust)’s
guarantee are limited to the creditors who declared their intention to enjoy thebeneficial interests as "third party beneficiaries" under Article 537 of the Civil Code.

3.
Rationale for Concluding Trust Agreement and Guarantee Entrustment
and Guarantee Agreement
As a result of consultation with the court and the examiner, the bankruptcy
trustee entered into the Trust Agreement and the Guarantee Entrustment and Guarantee
Agreement with SMBC , determining that it is necessary and appropriate to (i) establish
a trust for the principal and delay damages of the monetary claims filed in theBankruptcy Proceedings, the total amount of which is about JPY 17,864,000,000, with
the Trust Assets being a suitable amount of money for the interests creditors wereexpected to have obtained in the Bankruptcy Proceedings, and (ii) provides, amongothers, guarantees for obligations regarding the monetary claims for which proofs ofbankruptcy claims have been filed, which are only paid out of the Trust Assets.
Due to the Sale, the bankruptcy trustee has already secured a suitable amountof money to secure the interests that are expected to have obtained by BTC creditors
under the Bankruptcy Proceedings in connection with BTC claims to be treated as
non-monetary claims under the Civil Rehabilitation Proceedings. Accordingly, the4bankruptcy trustee has determined that the interests expected to have already beenobtained in the Bankruptcy Proceedings can be secured without taking theprofit-securing measures under the Trust Agreement and Guarantee Entrustment andGuarantee Agreement for the BTC claims, and the BTC claims are not included in thesubject protected claims under the Trust Agreement and the Guarantee Entrustment andGuarantee Agreement.
4.
Benefit of Trust Agreement and Guarantee Entrustment and Guarantee
Agreement
Due to the Trust Agreement and the Guarantee Entrustment and Guarantee
Agreement, the interests expected to have already been obtained by the monetarycreditors under the Bankruptcy Proceedings in connection with the monetary claims
filed in the Bankruptcy Proceedings are protected under, among others, the guaranteedclaims which are only paid out of the Trust Assets.
The civil rehabilitation trustee is considering to prepare a rehabilitation plantaking into consideration that the monetary claims filed in the Bankruptcy Proceedings
are protected as described above and to repay such monetary claims, the principal
obligations, in accordance with such rehabilitation plan. If such repayments are made,repayments of the guarantee obligations, among other obligations, under the TrustAgreement and the Guarantee Entrustment and Guarantee Agreement will becomeunnecessary.
Please note that monetary creditors who have filed proofs of bankruptcy claims
may be protected under a guarantee claim, among other claims, only if they havedeclared their intentions to enjoy their beneficiary interests as “third party beneficiaries”
under Article 537 of the Civil Code in accordance with the provisions of the Trust
Agreement and the Guarantee Entrustment and Guarantee Agreement within a certain
period of time.
I will notify you again at a later date about the details of the Trust Agreement
and the Guarantee Entrustment and Guarantee Agreement, and how the monetarycreditors may declare their intentions to enjoy the beneficiary interests, including
matters such as the method to declare such intentions to the civil rehabilitation trustee
and the requirement of submission of information for the account to which remissions
will be made for repayments of the guarantee and other obligations.
End of document5