mt. Gox Ends Claims Registration – What’s Next?

The story of the cryptocurrency exchange Mt. Gox and its repayments to creditors continue, as the company released a new statement about what will happen when the repayment application window closes.

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On April 7, the foreign exchange recovery trustee Nobuaki Kobayashi said the deadline for creditors to provide repayment information – to clarify who to pay and what type of payment – had passed.

The trustee said “principal, intermediate and one-time advances” will be paid by Oct. 31, 2023. However, this deadline “may be extended with the permission of the Tokyo District Court.”

Additionally, the trustee will take “necessary steps to prepare” for the reimbursement, including identifying reimbursement options and sharing information with banks, remittance service providers, exchanges, cryptocurrency exchanges, or any other custodian involved in the chargeback.

“For this reason, it is expected that repayments will take some time to commence.”

The exchange’s original downfall came in 2014 when it was forced to shut down after a hack that cost 850,000 BTC. Despite the FTX disaster of November 2022, Mt. Gox remains the largest crypto theft in history.

There have been delays in getting refunds to those affected. In 2018, a Japanese court finally approved the compensation package.

In March 2020, Kobayashi announced a new system where creditors can claim the remaining amount through bank statements, transaction records and identification.

The deadline for submitting claims was set for October 2020 and then pushed back to December. After receiving all the requests, the total came to nearly $16 billion, more than the possibility of reimbursement. .

In February 2023, the Mt. Gox Investment Fund—the largest creditor—decided to choose to pay 90% of what it owed in BTC in advance, rather than wait longer to receive a larger payment.

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As reported by Cointelegraph

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