Mt. Gox Repayment Registrations Closed, Now What?
Mt. Gox Update: Registration Window Closes, Company Releases Statement on Repayment Plan for Creditors.
On April 7, a statement was issued by Mt. Gox’s trustee Nobuaki Kobayashi in which he revealed the exchange saga’s upcoming big steps. The statement confirmed different creditors’ Mt. Gox Repayment Registrations window to provide their repayment information has officially closed.
Key Takeaways:
- Mt. Gox’s creditor registration is closed, and repayments will occur until Oct 31, 2023, with a possible extension.
- Creditors must prepare the necessary information before the repayment process commences.
- Mt. Gox’s 2014 hack was the largest crypto theft in history, and the total sum of all claims amounts to nearly $16 billion.
- The largest creditor has opted for an early payout in BTC for 90% of the owed amount.
- The Mt. Gox repayment process has caused frustration for affected creditors.
The statement further elaborated that “base repayment with intermediate repayment with total repayment” will proceed till October 31, 2023. There is also a fine possibility of extension in case the Tokyo District Court permits it. that “base repayment, intermediate repayment, and early lump-sum repayments” will be carried out until October 31, 2023.
As per the recent statement issued by Mt.Gox, there is a dire need to prepare the necessary stuff before any kind of payment proceeding takes place.
The brief preparation schedule includes confirming the selections for repayment including sharing relevant information with banks along with recent fund transfers to various providers involving cryptocurrency exchanges.
That is why the note says:
“In light of this, it is expected to take some time before the repayment is commenced.”
Back in 2014, Mt.Gox was made to shut down its operations as a result of a hack that led to the loss of 850,000 bitcoin(BTC). The estimated amount at that time was around 27,935$ for each BTC. forward in November 2022, Mt. Gox’s hack remains the biggest crypto theft in the history.
The repayment of funds to affected users has been subject to continuous delays. In 2018, a compensation plan was finally approved by a Japanese court.
In March 2020, Kobayashi established and introduced a conveniently new system to aid creditors in order to claim funds by providing proof of claims like bank statements, transaction records, and identification documents. The set deadline to submit claims was scheduled for October 2020 but was later extended to December 2020.
The saga of Mt. Gox has been ongoing for years, and the repayment process has been continuously delayed, causing frustration for affected creditors. However, with the registration window now closed, the company is moving forward with the repayment process.
Although, the total sum of all claims covered or received shoots up to available funds specifically catered to repayments, totaling nearly $16 billion. In February 2023, Mt. Gox established an Investment Fund, which was for the largest creditor. They decided to go with an early payout in Bitcoin for at least 90% of the total owed amount, rather than choosing to wait for hefty payment in the future.