By Michael Scott
Mt.Gox creditors must wait longer following the move to push the repayment deadline to October next year.
Nobuaki Kobayashi has formally publicized a deadline extension for creditor repayment. The representative currently oversees the nonoperational estate belonging to the Mt.Gox Bitcoin exchange.
Tokyo District Court Approves 12-Month Deadline Extension for Creditor Refunds
A September 21 letter revealed that the new creditor repayment deadline had been shifted from October 31, 2023, to a similar date next year. In his communication, Nobuaki claimed that with the Tokyo District Court’s approval, the deadline extension applies to the base repayment, intermediate repayment, and early lumpsum repayment.
The letter reads that because of the time needed for rehabilitation creditors to offer the necessary data and for the Rehabilitation Trustee to verify and participate in discussions and disclose the information to providers of fund transfer services, banks, and designated cryptocurrency exchanges involved in the repayments, it will be impossible for the Rehabilitation Committee to finalize the repayments prior to the deadline.
Repayment for Rehabilitated Creditors Prioritized
In 2021, a rehabilitation approval that vowed to reimburse an estimated 90% of the assets owed to impacted clients was ratified. There is hope for the rehabilitation creditors who have offered the appropriate data. Nobuaki claims that repayments may begin at the end of this year for these creditors.
The trustee warned that this schedule is still based on the present conditions, and the timing of the particular repayment to individual rehab creditors has not been established.
Review of Mt.Gox Journey in Crypto
Mt.Gox is located outside Japan and was one of the initial and popular cryptocurrency exchanges. At one point, it facilitated over 70% of all Bitcoin trades. Nevertheless, a major hack in 2011 dented its reputation.
It finally crumbled in 2014 amidst bankruptcy claims, resulting in the loss of 850000 Bitcoins. Further, the fallout resulted in nearly 24000 creditors seeking repayment, most of whom have patiently waited for the resolution for years.
Since the collapse of the exchange, it has been a significant challenge for Mt.Gox creditors since they have encountered rehabilitation plan interruptions and substantial fees in a tussle to recover lost funds.
The most current data shows that the Mt.Gox estate holds an estimated 138000 Bitcoin, and according to the most recent price, they are worth $3.7B. Additionally, the estate has Bitcoin CASH amounting to $29B and 69B Japanese Yen ($46.5M).
Earlier this year, two Russian men, Aleksandr Verner and Alexey Bilyuchenko, were charged by the United States Department of Justice (DOJ) for colluding to steal an estimated 647000 BTC from the exchange between 2011 and 2014.
Editorial credit: Burdun Iliya / Shutterstock.com