In a recent development, the Rehabilitation Trustee has pushed the registration deadline for claims against Mt. Gox for another month. The deadline was initially set for March 10 but will now be April 6, 2023.
Mt. Gox was once the largest Bitcoin exchange in the world, but in 2014, it suffered a massive hack that resulted in the loss of 850,000 BTC. The hack devastated the cryptocurrency community, and Mt. Gox declared bankruptcy shortly after.
Since then, a long and complicated legal process has been underway to determine how the remaining assets of Mt. Gox should be distributed among creditors.
Mt. Gox Creditors Claims Pushed For Another Month
On March 30, 2020, a Japanese court approved extending a rehabilitation plan allowing creditors to receive their remaining bitcoin.
However, many creditors have had difficulty registering their claims, as the process has been complex and requires extensive documentation. In response to the occurrence, the court has extended the deadline providing an additional month for creditors to submit their claims.
The delay in the claims process had frustrated many creditors, who have waited years to receive compensation for their losses. But the extension allows them to file claims and receive compensation for lost funds.
The deadline extension has also affected the date slated to distribute creditors’ assets. According to a tweet, the distribution date is now scheduled for October 31, 2023, instead of the previous date of September 30.
The Mt. Gox case remains one of the most high-profile cases in the cryptocurrency industry, and many will closely watch the outcome of the rehabilitation process.
A Brief On Mt. Gox
According to reports, Mt Gox halted its operations in 2014 following a huge hack incident. The theft forced the platform to opt for bankruptcy filing shortly after. But before the 2014 incident, the firm recorded a hacking case in 2011, which affected approximately 24,000 creditors.
The several negative occurrences in the firm resulted in the civil rehabilitation of the Japanese court in 2018. Through this rehabilitation, creditors who lost their funds after the platform’s collapse became hopeful of getting their funds. The move by the Japanese court also aimed to stop BTC’s massive sell-off at the time.
However, the creditors still await their refunds, as the court has always shifted the deadlines for registering their claims. In April 2019, the exchange received a similar extension from its Trustee, which saw the rehabilitation deadline move to October 2019. So this is not the first time the court is shifting the deadline for filing claims.
The creditors can receive 90% of their funds in October or wait for the total amount at the end of the court processes. Some creditors have already chosen the early payout.
Featured image from Pexels and chart from Tradingview.com