Creditors of the defunct crypto exchange Mt Gox have an extra month to apply for repayments after the company’s trustee obtained court approval to extend the registration period for another month. The trustee cited “various circumstances such as the progress by rehabilitation creditors in respect of the Selection and Registration.”
Mt Gox, a Tokyo-based crypto exchange, suffered a security breach in 2014, losing around 850,000 bitcoins valued at $460 million at the time. Efforts to unwind the company’s assets and repay creditors have turned into a near-decade-long battle.
Creditors Have Until April 6 to Register for Repayment
In an announcement on Thursday, Mt Gox said it had adjusted the registration deadline, previously scheduled for March 10, 2023, to April 6, 2023. Creditors are advised to follow the new date and register their information in an approved online rehabilitation claim filing system to qualify for reimbursement.
Last year, Mt Gox trustee Nobuaki Kobayashi announced the company’s rehabilitation plan requiring creditors to register for repayment and choose a suitable payment method from the available options listed as a bank, fund transfer service provider, crypto exchange, or custodian.
At that time, the deadline was slated for January 2023. However, the date was moved to March 10 before the latest rescheduling date to April 6.
In addition to postponing the registration deadline, the company shifted its repayment deadline to another month. Mt. Gox had previously fixed the repayment deadline for September 30, 2023, but the date has now been pushed further to October 30, 2023.
Mt Gox to Distribute 142, 000 BTC
The upcoming distribution of assets to Mt. Gox creditors is one the crypto industry keeps a keen eye on. Mt. Gox disclosed last year that it would distribute approximately 142 000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and 69 billion yen.
The exchange previously recovered part of the crypto assets stolen from the platform during the hack nine years ago. With bitcoin trading for around $800 at the time, the general sentiment is that the distribution could spark a market sell-off as investors may move to realize profits.
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