As for why not return bitcoin instead of USD. I think there are many interested parties that want to get their hands on this money. Its common to count your losses in USD which were sustained at the moment of theft of your asset. All the surplus received from selling bitcoin at current prices will be absorbed by bankruptcy administrators and other intermediaries.
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I agree with your point on the reasoning, but my thought stemmed from if I wanted my BTC back vs. USD (debt notes), I would imagine a lot of the others want their BTC back too. Of course, like you said, "All the surplus received from selling bitcoin at current prices will be absorbed by bankruptcy administrators and other intermediaries." That's really what it's all about. All the best
What if you had another type of asset, like bar of gold or ton of diesel, which was stolen. If you are reimbursed few years later, would you expect to be reimbursed at current prices of gold or diesel?
Sure. Then again the difference being that you can't really spend a bar of gold or ton of diesel. Of course, Bitcoin opened the door to a whole new asset class all-together.