tokenist.com
After obtaining legal permission, the trustee of the collapsed bitcoin exchange Mt. Gox has pushed back the deadline for repayment claims by an additional month, according to the latest announcement. The creditors can now file their repayment claims until April 6th instead of March 10th.
Mt. Gox Largest Creditor Says it Won’t Sell
The registration deadline for Mt. Gox creditors has been extended from March 10 to April, the bankrupt bitcoin exchange announced on Thursday. This means the creditors have an additional month to register their repayment claims. The distribution deadline has also been delayed for another month, with the distribution process now expected to start on Oct. 31st instead of Sep. 30th. This is the second time the deadline has been pushed back this year.
Mt. Gox trustee Nobuaki Kobayashi said the exchange obtained the court’s approval to push back the deadline due to “various circumstances such as the progress by rehabilitation creditors in respect of the Selection and Registration.” He added that those who fail to file their claims before April 6th would not be allowed to collect repayments.
Meanwhile, according to Bloomberg, the exchange’s largest creditor, the Mt Gox Investment Fund, said it does not intend to sell the tokens expected to be distributed in October. The fund opted for an early payout instead of for all the legal proceedings to be resolved. As such, it will receive 90% of available refunds – 70% in Bitcoin and 30% in cash, the report states. The exact amount of Bitcoin fund is expected to receive remained undisclosed.
A Nine-Year Wait for Creditors
Following the latest deadline pushback, Mt. Gox creditors have less than a month to pick the October payout or wait longer for a higher repayment. They can choose between a lump-sum payment, bank remittance, fund transfer service provider, or a cryptocurrency exchange.
Creditors have been waiting nine years to collect refunds after losing their assets in a hack that took the Tokyo-based bitcoin exchange down. At the time, Mt. Gox accounted for over 70% of Bitcoin transactions, and its collapse is one of the biggest in the industry.
Mt. Gox creditors are owed roughly nearly 150,000 Bitcoin, according to prior documents. At current prices, these funds are worth around $3.1 billion.
The world’s biggest cryptocurrency has somewhat recovered in recent months following a devastating 2022 that pushed prices to multi-year lows. It currently trades at $21,721 apiece, still a far cry from its all-time high of nearly $69,000 it reached in November 2021.
Do you think Mt. Gox creditors could build a selling pressure on bitcoin after they receive their claims? Let us know in the comment below.