Mt. Gox to Begin Repayments to Creditors
After nearly ten years of being shut down, Mt. Gox plans to start repaying its creditors. In an email sent today, the bankrupt bitcoin exchange announced that the rehabilitation trustee is working towards initiating cash repayments sometime in 2023.
It is expected that due to the large number of creditors, the repayments will continue into 2024.
Nobuaki Kobayashi’s Statement
Nobuaki Kobayashi, the trustee overseeing Mt. Gox’s bankruptcy proceedings, stated that the specific timing of repayments to individual creditors is uncertain. Therefore, creditors will not receive advance notice of the exact timing of their repayment.
Kobayashi also mentioned that creditors can check 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.”
Timeline of Mt. Gox’s Troubles
Once a major cryptocurrency exchange, Mt. Gox handled over 70% of all blockchain transactions at its peak. However, it suffered a significant hack in 2011 that eventually led to its bankruptcy in 2014. The exchange claimed insolvency and started civil rehabilitation proceedings four years later in an attempt to compensate its creditors.
This event affected around 24,000 creditors and resulted in the loss of 850,000 BTC. Repayment plans were delayed due to legal disputes and fluctuations in the crypto market.
In September, it was reported that the repayment deadline for creditors was extended to October 31, 2024, for all categories.
Despite its turbulent history, Mt. Gox still holds significant digital assets, including approximately 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen (JPY).
### News source: cryptopotato.com