Mt.Gox Releases Update on Refund Procedure

Long-deceased Japanese cryptocurrency exchange Mount Gox trustee, Nobuaki Kobayashirevealed an update on the rehabilitation plan for his creditors. Kobayashi confirmed that creditors have until September 15 for submit complaints regarding the funds lost from the failure of cryptocurrency exchanges in 2014.

What does the updated information say?

According to the document published on August 31, the “Reference period of the restriction”which is one of the final stages of the repayment of creditors will begin September 15. During this period, the assignment, transfer or succession, guarantee performance or disposal by other means of rehabilitative credits will take place. prohibited.

Although the document is not clear on the expiration of the restriction period, but confirms that it will be followed by the first full repayment to creditorsas outlined in the Rehabilitation Plan approved by approximately 99 percent of eligible users affected by the case.

The release also said that if a transfer notice is presented during the restriction period, the trustee may be unable to determine who to pay back. The document further stated,

“This could result in rehabilitation creditors not being able to receive their preferred repayments, the repayment date being significantly delayed compared to other rehabilitation creditors, or in the worst case, the repayment amount could be deposited. at the Tokyo Legal Department in accordance with laws and regulations. “

What happened to Mount Gox?

Mt.Gox publishes the update on the refund procedure

Mt. Gox was one of the largest exchanges in the early years of Bitcoin (BTC) adoption. In February 2014, the exchange claimed a huge loss and stopped withdrawals which they claim to have discovered suspicious behavior in its digital wallets. In the process, the exchange lost hundreds of thousands of Bitcoins (BTC).

The number of coins reported missing ranged from From 650,000 to 850,000. By the end of the month, the company suspended withdrawals and stopped trading, which led to aa 36% drop in the price of Bitcoin by the end of February, that was around $ 540 for one Bitcoin.

Local and international authorities have been able to relocate around 200,000 BTC, with consequent destabilization of the market. Mount Gox declared bankruptcy at the Tokyo District Court and was subsequently sentenced to liquidation in April 2014. Then, Mt. Gox’s assets were placed on an estate that included over 200,000 Bitcoin and Bitcoin Cash.

In 2022, Kobayashi revealed the remaining assets of Mt Gox and also outlined a plan to pay off Mt. Gox investors. Creditors must apply and file their claim with BTC, which will then be reviewed and refunded.

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