The Tokyo-based cryptocurrency exchange, Mt. Gox, was hacked in 2014, resulting in the loss of thousands of Bitcoin and ultimately leading to its bankruptcy. Creditors have been waiting for years to be compensated for their losses, and the deadline for filing claims has been extended once again.
Deadline Extension and Distribution Delay
The official document cited various circumstances for the change in deadlines, including the progress of rehabilitation creditors with respect to selection and registration. Creditors can choose to receive their payment through a lump-sum payment, bank remittance, fund transfer service provider, or cryptocurrency exchange or custodian. The deadline extension gives other creditors an additional month to decide whether to accept a reduced amount or wait for the full amount for another nine years.
Mt. Gox Investment Fund’s Decision
The largest creditor of the defunct crypto exchange, Mt. Gox Investment Fund, has opted for an early payout in Bitcoin instead of waiting for a potentially larger payment through legal channels. This decision means that creditors will receive around 90% of the due amount, without the bankruptcy trustee having to sell tokens to acquire fiat funds for the payment.
Potential Impact on the Market
The payout to Mt. Gox creditors has been a topic of discussion, with speculation about the potential impact on the market if creditors sell their holdings. However, reports suggest that the largest Mt. Gox creditors have no plans to sell their Bitcoin, which is a good news for the market. Bitcoin has been struggling to keep the current levels, with Silvergate, once the main Crypto bank, suffering major losses.
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The deadline for Mt. Gox creditors to file compensation claims has been extended by a month, with the new deadline now set for April 10. The distribution of assets will also be delayed, starting from Oct. 30 instead of Sept. 30. The largest creditor of the defunct crypto exchange, Mt. Gox Investment Fund, has opted for an early payout in Bitcoin instead of waiting for a potentially larger payment through legal channels. Reports suggest that the largest Mt. Gox creditors have no plans to sell their Bitcoin.