Mt. Gox Trustee Extends Deadline for Repaying Creditors
In a long-standing issue that has captivated the crypto world for nearly a decade, Nobuaki Kobayashi, the trustee overseeing the bankruptcy proceedings of Mt. Gox, has recently announced an extension for repaying creditors.
Kobayashi hopes that repayments to creditors who have provided the necessary information may begin by the end of 2023, according to a court document released on Sept. 21.
Deadline Pushed to October 2024
The deadline has been extended to October 31, 2024, from October 31, 2023, applying to all repayment categories. The Tokyo District Court has already approved the alterations requested by Mt. Gox, as stated in the document:
“With permission of the Tokyo District Court, the Rehabilitation Trustee has changed the deadline of the Base Repayment, the Early Lump-Sum Repayment, and Intermediate Repayment from October 31, 2023 (Japan Time) to October 31, 2024 (Japan Time), respectively.”
The trustee acknowledges that these plans may change depending on evolving circumstances and did not provide a specific timeline for partial repayments to each creditor. Creditors who have already submitted their information may start receiving repayments by the end of this year.
Significant Virtual Assets Held by Mt. Gox
Despite its troubled past, Mt. Gox still possesses a substantial amount of virtual assets. Recent reports indicate that it currently holds approximately 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen (JPY).
Mt. Gox experienced major problems starting in 2011 when it suffered a significant hack. In the aftermath, around 24,000 creditors lost a staggering 850,000 BTC. However, some reports suggest that the actual amount of stolen coins was closer to 980,000 Bitcoin, resulting in billions of dollars in losses.
This is not the first time the deadline has been extended. Earlier this year, it was moved from September 30 to October 31 due to an extension of the registration period for the BTC repayment process, which was prolonged from March 10 to April 6.
Hope for Creditors
Creditors of Mt. Gox were given the opportunity to vote on a proposed rehabilitation plan in recent years. This latest announcement brings a glimmer of hope for creditors who have been involved in this ordeal since 2014.
While the Mt. Gox issue is nearing its conclusion, other problems are emerging in the crypto space. Investors in FTX and other recently collapsed networks are also closely watching developments and awaiting repayment.
Hot Take: Mt. Gox Trustee Extends Repayment Deadline for Creditors
The trustee overseeing the bankruptcy proceedings of Mt. Gox has extended the deadline for repaying creditors, providing hope for those who have been waiting since 2014. The new deadline is October 31, 2024, and repayments may begin by the end of 2023 for creditors who have submitted their information. Despite its troubled past, Mt. Gox still holds significant virtual assets, including thousands of Bitcoin and Bitcoin Cash. This extension comes after previous deadline extensions earlier this year. As the Mt. Gox situation nears its resolution, investors in other collapsed networks are also eagerly awaiting repayment.
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