An extension to submit how they wish to receive their compensation has been granted to the creditors of the defunct cryptocurrency exchange, Mt. Gox, and as a result their repayment date has been extended.
March 10 rather than January 10 the deadline for filing
According to a document from the exchange’s administrator, Nobuaki Kobayashi, the registration deadline, which was previously set at January 10, 2023, has been extended to March 10 (Japan time) after receiving court approval.
“The deadline for the Election and Registration was 10 January 2023 (Japan time), but having received the court’s approval, the Rehabilitation Trustee has changed the deadline to 10 March 2023 (Japan time), taking into account various circumstances such as progress by rehabilitation creditors in relation to the Election and Registration,” the trustee wrote.
Compensation deadline extended to September 30
Kobayashi urged creditors to complete the registration process before the new deadline, adding that those who do not complete their election will not receive compensation or may need to submit additional documents to the company’s headquarters. The administrator noted that those who have already registered their options do not need to do so again.
In addition, the extension has affected the distribution deadline, as creditors will have to wait longer to receive compensation.
The repayment deadline was moved from July 31 to September 30, 2023.
“Having obtained the court’s permission, the Rehabilitation Trustee also changed the Basic Repayment Deadline, the Early Repayment One-off Deadline and the Interim Repayment Deadline, from 31 July 2023 (Japan time) to 30 September 2023 (Japan time after), following the change in the deadline for selection and registration.”
Mt. Gox creditors will receive billions
Recall that Mt. Gox became insolvent in 2014 after it claimed to have lost 850,000 bitcoin in a hacker attack. Since then, the company has been working on how to repay affected customers.
The value of BTC stolen from the exchange was $473 million at the time of the incident, but at current prices it amounts to over $14 billion. However, the administrator will not pay 850,000 BTC to creditors as the exchange claimed that it was unable to recover the stolen BTC.
However, creditors are expected to receive more than 140,000 BTC, worth about $2.3 billion.