Lasting nearly a decade, Mt. Gox and the stolen Bitcoin saga is one step closer to the end with an important deadline update.
Mt. Gox creditors are waiting for this date for Bitcoin payments
Mt. Gox trustees have set the deadline for filing the repayment election as January 10. Exchange users are one step closer to getting their funds back after trustee Nobuaki Kobayashi announced their redemption options. Creditors of the closed exchange have until January 2023 to choose a repayment method.
According to Nobuaki Kobayashi’s October 6 announcement, creditors must specify their payment method by January 10. Kobayashi’s update is the latest in the process that began with a 2018 petition by users to reimburse the funds following the stock market crash in 2014. Meanwhile, crypto exchange Bitstamp announced that it will be one of the firms supporting the cashback scheme:
Bitstamp is pleased to announce that we are supporting the rehabilitation process for MtGox creditors.
If you’re affected by this, find out more here: https://t.co/18bLcbjpKE$BTC #bitcoin #mtgox
— Bitstamp (@Bitstamp) October 6, 2022
Mt.Gox is a Japanese-based exchange that was hacked in 2011 and lost over 850,000 BTC. As a result, the company filed for bankruptcy in 2014. In November 2021, the exchange announced a “Rehabilitation Plan” to return approximately 137,000 BTC to investors. At this time, it is unclear whether the payment plan includes the option for creditors to receive Bitcoin (BTC) or fiat. It is also not clear how soon after the January 10 deadline the funds will be distributed.
It is not certain that the distribution will be on this date
Kobayashi noted that creditors who do not complete the “selection and registration” process by January 10, 2023 will lose their funds. A source familiar with the situation noted that January 10 is the deadline for submissions only. Accordingly, January 10 will not be the day of distribution. This is expected to happen at some point in 2023. According to Mt.Gox survivor Marshall Hayner’s tweet on the subject:
I have Mt. I am one of Gox’s creditors and I can confirm that we are not close to receiving our Bitcoin. Like me, most people have no intention of selling. Don’t believe what Twitter influencers tell you.
I am a creditor of Mt. Gox and can confirm we are not close to receiving our #Bitcoin. Most people like me also have no intention of selling it. Don’t believe what influencers on Twitter are telling you.
— Marshall Hayner (@MarshallHayner) August 28, 2022
Documents regarding the release of funds are uploaded for creditors’ review before completing the process. This is Mt. Gox exchange, a guide for choosing a crypto exchange or custodian, and a notice to change the rehabilitation plan and obtain permission for payments.
The creditors were asked to verify that their names and addresses were correct, as the information provided in the database will be used to verify their identity before a refund is issued. Any details that need to be updated should be done before the deadline.
What had happened?
Mt. Gox was a Tokyo-based cryptocurrency exchange that operated between 2010 and 2014. At its peak, it was responsible for over 70% of Bitcoin transactions. Most commonly Mt. Gox, the exchange is sometimes referred to as MtGox or Mt Gox. The stock market declared bankruptcy in 2014, but continued to be the subject of lawsuits and speculation for years.
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