Mt. Gox Trustee Extends Deadline for Repaying Creditors
September 21, 2023, 14:05 GMT+7
For creditors of the now-closed Mt. Gox cryptocurrency exchange, Nobuaki Kobayashi, the individual overseeing the exchange’s bankruptcy proceedings, has granted a one-year extension to the repayment deadline.
Extended Deadline: Creditors Must Wait Until October 2024
Originally scheduled for October 31, 2023, the new deadline for creditors to receive their funds has been postponed to October 31, 2024.
This extension, authorized by the Tokyo District Court, covers all types of repayment, including the base repayment, early lump-sum repayment, and intermediate repayment.
This decision is expected to provide creditors with extra time to prepare for the recovery of their assets.
In a statement released on September 21, Kobayashi noted that repayments to rehabilitation creditors who have submitted the required information may start as early as the end of this year.
However, he cautioned that the timetable is subject to change based on evolving circumstances, and the specific timing for each creditor’s repayment is yet to be determined.
The 2011 Hack: Mt. Gox’s Downfall Begins
The Mt. Gox estate, once a prominent player in the cryptocurrency world, currently holds a significant amount of digital assets.
At present, it possesses approximately 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen (JPY). These assets are expected to be distributed among the creditors as part of the ongoing bankruptcy proceedings.
Mt. Gox’s turbulent history traces back to 2011 when it experienced a massive hack, leading to allegations of insolvency. Ultimately, the exchange collapsed in 2014, leaving a trail of destruction that affected approximately 24,000 creditors and resulted in the loss of a staggering 850,000 BTC.
This incident marked a pivotal moment in the history of cryptocurrency exchanges and underscored the necessity for heightened security measures in the industry.
As creditors anxiously await the return of their assets, the extension of the deadline offers renewed hope to those who have patiently navigated the complex Mt. Gox rehabilitation process.
The cryptocurrency community will closely monitor the proceedings, as the outcome is expected to have long-term implications for trust and security perceptions within the digital asset space.
Creditors Given Opportunity to Vote on Rehabilitation Plan
In 2021, Finance Magnates reported that creditors of the Mt. Gox Bitcoin exchange were given the chance to vote online on a proposed rehabilitation plan. This announcement followed several extensions that allowed creditors to express their opinions on the plan.
The online voting feature was accessible through claims.mtgox.com, with the voting deadline set for October 8, 2021, Japan time. Failure to vote was considered a vote against the plan, which would take effect upon approval and confirmation by the Tokyo District Court.
