For creditors of the now-defunct Mt. Gox cryptocurrency exchange, Nobuaki Kobayashi, the trustee overseeing the exchange’s bankruptcy proceedings, has announced a one-year extension to the deadline for repayments.
Originally set for October 31, 2023, the new deadline for creditors to receive their funds has been pushed back to October 31, 2024. This extension, granted with the permission of the Tokyo District Court, encompasses all categories of repayment, including base repayment, early lump-sum repayment, and intermediate repayment. This is expected to provide creditors with additional time to prepare for the recovery of their assets.
In a letter released on September 21, Kobayashi emphasized that repayments to rehabilitation creditors who have supplied the required information may begin as early as the end of this year. However, he cautioned that the schedule remains subject to change, depending on evolving circumstances, and the specific timing for each creditor’s repayment has yet to be determined.
2011 Hack: The Start of Mt. Gox’s Downfall
The Mt. Gox estate, once a dominant force in the cryptocurrency ecosystem, currently holds a significant amount of digital assets. As of now, it possesses approximately 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash, and 69 billion Japanese yen. These assets are expected to be distributed among the creditors by the ongoing bankruptcy.
Mt. Gox’s chaotic history dates back to 2011 when it suffered a massive hack, leading to allegations of insolvency. The exchange ultimately collapsed in 2014, leaving a trail of devastation that impacted around 24,000 creditors and resulted in the loss of a staggering 850,000 BTC. This incident marked a turning point in the history of cryptocurrency exchanges and highlighted the need for enhanced security measures within the industry.
As creditors eagerly await the repayment of their assets, the extension of the deadline offers renewed hope for those who have patiently navigated the complex Mt. Gox rehabilitation process.
The cryptocurrency community will closely watch the proceedings, with the outcome expected to have lasting implications for the perception of trust and security in the digital asset space.
Creditors Given Opportunity to Vote on Rehabilitation Plan
In 2021, creditors of Mt. Gox Bitcoin exchange had been granted the chance to vote on a proposed rehabilitation plan. The announcement came after multiple extensions allowing creditors to voice their opinions on the plan. The deadline for voting set for October 8, 2021, Japan time. Failure to vote would be considered as voting against the plan, which would come into effect upon approval and the Tokyo District Court’s confirmation.