Bitcoin News

Mt. Gox Creditors Prepare for Bitcoin Repayments

Nobuaki Kobayashi, the rehabilitation trustee for the defunct cryptocurrency exchange Mt. Gox, released a letter today outlining the steps taken towards repaying creditors. With the deadline for submitting repayment information having passed on April 6, 2023, preparations are now underway to distribute recovered Bitcoin by October 31, 2023.

Repayment Preparations

Kobayashi has been in contact with banks, money transfer providers, and cryptocurrency exchanges to establish repayment arrangements. The trustee is currently finalizing details, such as confirming creditor selections and registrations. As a result, it may take some time before repayments begin.

The base, interim, and early lump sum repayments are set for October 21, 2023. However, the exact timing for individual creditors remains undetermined. The Tokyo District Court could approve deadline extensions if necessary.

Bitstamp, a Luxembourg-based crypto exchange, is one of four chosen to assist with repayments. They have provided guidance to creditors on the necessary steps to make their claims.

Impact on Bitcoin Price

The rehabilitation plan will reimburse victims with 141,686 Bitcoin (BTC), around 143,000 Bitcoin Cash (BCH), and 69 billion yen. The repayment method, whether in cryptocurrency or fiat, was chosen by creditors before the deadline.

After an initial payment of 200,000 yen (approximately $1,520), creditors with larger claims can opt for a 71% crypto and 29% cash split. The exact amount of Bitcoin that could affect market prices is difficult to predict, as the trustee will distribute the repayments gradually until October’s end.

Bitcoinica, a New Zealand-based crypto exchange, and the Mt. Gox Investment Funds, the two largest creditors, have chosen Bitcoin for their bankruptcy payouts, accounting for 20% of all claims. However, the Mt. Gox Investment Fund has expressed intentions to hold, not sell, their BTC. Consequently, the likelihood of a significant price drop due to Mt. Gox payouts is low, as the market is expected to absorb the gradual influx of Bitcoin.

As the Mt. Gox rehabilitation process moves forward, the trustee is taking necessary measures to ensure an orderly repayment process. While the exact impact on Bitcoin’s price remains uncertain, the market appears capable of handling the distribution without significant disruption.

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Key Points

What is the deadline for Mt. Gox Bitcoin repayments?

The deadline for creditors to submit repayment information was April 6, 2023. Repayments are expected to be made by October 31, 2023.

How much will Mt. Gox creditors be reimbursed?

Victims of the Mt. Gox hack will receive a total of 141,686 Bitcoin (BTC), around 143,000 Bitcoin Cash (BCH), and 69 billion yen.

Will the Mt. Gox repayments affect Bitcoin’s price?

Although it is difficult to predict the exact impact on Bitcoin’s price, the market is expected to absorb the gradual influx of Bitcoin without causing significant disruptions.

Which crypto exchanges are assisting with Mt. Gox repayments?

Bitstamp, a Luxembourg-based crypto exchange, is one of four exchanges selected to help with the repayments.


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