Nobuaki Kobayashi, the trustee overseeing the bankruptcy proceedings of the now-defunct cryptocurrency exchange Mt. Gox, has announced a further extension of the repayment deadline for creditors.
In a letter addressed to the creditors on September 21, 2023, Kobayashi revealed that the Tokyo District Court had granted the approval to push the deadline for base repayment, early lump-sum repayment, and intermediate repayment from October 31, 2023, to October 31, 2024.
While Kobayashi mentioned that repayments for rehabilitation creditors who have submitted the necessary information could commence by the end of this year, he emphasized that the schedule remains subject to change depending on evolving circumstances. The specific timing for each creditor’s repayment is yet to be finalized.
“Please note that the schedule is subject to change depending on the circumstances, and the specific timing of repayments to each rehabilitation creditor has not yet been determined,” Kobayashi stated.
This extension marks the second time the repayment deadline has been shifted. Initially set for September 30, 2023, it was postponed to October 31, 2023, in March 2023 to accommodate creditors registering their claims.
Mt. Gox, once a prominent cryptocurrency exchange, played a central role in the early cryptocurrency ecosystem. At some point, it facilitated over 70% of all trades in the ecosystem. However, it suffered a major security breach in 2011 and subsequently collapsed in 2014, allegedly due to insolvency. This incident affected approximately 24,000 creditors, resulting in the loss of 850,000 BTC.
The Mt. Gox estate currently holds around 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen.
Creditors have been patiently awaiting reimbursement since the exchange’s security breach in 2014. The new repayment date set for October 2024 means a decade-long wait for creditors to recover only 90% of their owed funds.
Notably, the largest creditor of the bankrupt Mt. Gox crypto exchange, Mt. Gox Investment Fund, opted for an early payout in Bitcoin rather than waiting for the conclusion of all legal proceedings.
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