The saga of the Mt. Gox cryptocurrency exchange and the repayment of its creditors continues, as the company released a new statement as to what to expect now that its registration window has closed.
On April 7, the former exchange released a statement from its rehabilitation trustee Nobuaki Kobayashi saying the deadline for creditors to provide their repayment information — clarification of payee and payment type — has passed.
It then went on to say that “base repayment, intermediate repayment and early lump-sum repayments” will be carried out until Oct. 31, 2023, though this final deadline “might be extended with the permission of the Tokyo District Court.”
The note also said that the trustee will carry out the “necessary preparations” to make the repayment, which includes confirmation of the selections for repayment and the sharing of the information with banks, fund transfer providers, cryptocurrency exchanges or any other custodian involved in the repayment.
For this reason, the note read: “In light of this, it is expected to take some time before the repayment is commenced.”
The initial demise of the exchange happened in 2014 when it was forced to shut down after a hack amounting to the loss of 850,000 Bitcoin (BTC). Despite the FTX catastrophe that took place in Nov. 2022, Mt. Gox’s demise remains the greatest crypto robbery in history.
There have been continual delays in the situation surrounding the repayment of funds to those affected. In 2018, nearly four years later, a Japanese court approved a plan for compensation.
In March 2020, Kobayashi announced a new system for the remaining funds to be claimed by creditors, through proof of claim via bank statements, transaction records and identification documents.
The deadline for submitting claims was set for October 2020, which was subsequently pushed back to December. After all claims were received the amount came to more than available at nearly $16 billion.
In February 2023, Mt. Gox Investment Fund, the largest creditor in the situation, decided to go for the option of an early payout in BTC for 90% of what is owed, instead of waiting longer for a larger payment.