The distribution of funds to creditors of the defunct crypto exchange Mt.Gox is set to kick off on March 10, and the business’s Japanese bankruptcy trustee has set September 30 as the deadline for the repayments.
Mt. Gox trustee, Nobuaki Kobayashi, has asked creditors to select a repayment method, register payee information online and indicate how they want to receive their repayments. The original deadline for this selection and registration was scheduled for January 10, but was then delayed by two months.
As described in the notice, those who fail to complete the “selection and registration” process before the deadline will not be able to receive such repayments as the early lump sum. They will also forfeit their rights in a portion of the cryptocurrency rehabilitation claims, bank remittance payments, or remittance through a fund transfer service provider.
Kobayashi published additional explanatory materials including a notice concerning the amendment of the rehabilitation plan and acquired permissions. It also contains information on the financial situation of Mt. Gox, the income and expenditure statement, and a guide to the selection of a crypto exchange or custodian.
“Well, for myself, I had pretty much written off the Bitcoin I still had on Mt. Gox in 2014 as a loss, so philosophically anything I get back now is a bonus to cold store. It has stretched on for many more years than anyone expected, and so it will be welcome I am sure by any creditors to finally get paid,” said Blockstream CEO Adam Back, who is an Mt. Gox creditor.
Bitstamp and BitGo were appointed by Mt. Gox trustee as some of the designated crypto exchanges to assist in the repayment procedures to creditors. Bitstamp has released a complete description of how those affected can register to reclaim their digital assets through the exchange. However, it acknowledged payments may take up to three months to be processed.
A creditor of Mt. Gox can choose their preferred cryptocurrency exchange and register as a user for the receipt of the relevant assets according to the repayment procedures under the rehabilitation plan.
Almost a decade after an attack forced the platform to shut down, Mt. Gox creditors were given the option to choose between bitcoin, cash or Bitcoin Cash to receive repayment. The process could make the frozen crypto assets liquid again, depending on the entitled users’ choices.
Those who chose to receive their repayment in bitcoin are reportedly posing a new selling threat to an already battered market. Even those who opt to get paid in fiat money are risking pressuring the market further as the trustee would supposedly liquidate an equivalent amount of bitcoin to pay out those interested in receiving cash.
The two largest creditors of Mt. Gox, Bitcoinica and MtGox Investment Funds (MGIF), said last month they chose to get their bankruptcy recovery funds paid out in bitcoin.
Rather than waiting another 3 to 5 years, the Early Lum-Sum Repayment will enable creditors to recover somewhere between 15%-25% of what they actually held on to the exchange. The liquidity option also allows them to choose which assets would like to be paid back in BTC and/or BCH or cash.