- After repeated delays, Mt Gox prepares to settle repayments with creditors in cash soon.
Mt. Gox is prepared to initiate cash repayments to creditors soon, almost a decade after it ceased operations.
In an email to its creditors today, the defunct Bitcoin exchange revealed that the rehabilitation trustee is actively working towards commencing cash repayments in the course of the 2023 calendar year.
Due to the substantial number of rehabilitation creditors, the repayments are expected to extend into 2024.
Relief to Mt. Gox Creditors
Nobuaki Kobayashi, the trustee overseeing the bankruptcy proceedings of Mt. Gox, stated on reddit that the specific timing of repaying individual rehabilitation creditors is undetermined.
As a result, it won’t be feasible to provide advance notice to each rehabilitation creditor regarding the exact timing of their repayment.
Kobayashi also mentioned that creditors have the option to review the status of repayments through the claim filing system.
“The Rehabilitation Trustee plans to commence repayment to creditors shortly. The Rehabilitation Trustee is making efforts to commence repayments in cash within the 2023 calendar year. However, due to the large number of rehabilitation creditors who will receive repayment, the varying types of repayments, the different preparation and processing times required to make the repayment, repayments will continue into 2024.”
Delays in Repayment
Mt. Gox was one of the first cryptocurrency exchanges. At its peak, the Tokyo-based platform used to handle over 70% of all transactions within the blockchain ecosystem.
It suffered a massive hack in 2011, which marked the inception of a chain of events that culminated in its bankruptcy in 2014. Mt. Gox had then claimed insolvency as the reason for its collapse and entered civil rehabilitation proceedings four years later and aimed to compensate its creditors.
This event had widespread repercussions, impacting approximately 24,000 creditors and leading to the loss of 850,000 BTC. Moreover, repayment plans faced delays due to legal disputes and the crypto market fluctuations.
The latest move seems to signify the initial phase of repayments for all. In September, it was reported that the Mt. Gox rehabilitation trustee extended the repayment deadline for creditors from October 31, 2023, to October 31, 2024. The extension applied to all repayment categories.
Despite its tumultuous history, Mt. Gox retains significant digital assets. Recent reports indicate that the estate presently possesses approximately 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen (JPY).