Creditors of the now-defunct cryptocurrency exchange Mt. Gox have until the end of the week to sign up and choose a way to get their money back as part of a plan to make them whole.
In a March 7 announcement, Mt. Gox trustee Nobuaki Kobayashi repeated a notice from January, reminding creditors who had yet to sign up for repayment that they had until March 10 to do so. This was part of the October-proposed rehabilitation plan to give creditors two more months to sign up for compensation. Kobayashi didn’t provide a reason for the extension. It would let people who lost money on Mt. Gox choose how to get their money back and register their information online for filing compensation claims.
Creditors can have a lump-sum payment, a bank transfer, a fund transfer service provider, or an exchange or custodian for cryptocurrencies. Experts say that the amount of money that Mt. Gox users lost when the exchange platform shut down was billions of dollars.
MtGox creditors: are you unsure choosing between Early Lump Sum Payment or waiting for Final Payment? Both are perfectly valid and rational choices, and you should think for yourself and decide what’s best for you.
A few considerations. 🧵 https://t.co/WkwVcZysRh
— WizSec Bitcoin Research (@wizsecurity) March 2, 2023
The update from the Mt. Gox trustee may be one of the final announcements related to the creditors’ rehabilitation plan initiated in 2018. In October 2021, roughly 99% of creditors affected by Mt. Gox’s bankruptcy had approved a draft rehabilitation plan. Kobayashi announced in November 2021 that the plan was considered “final and binding” following a Japanese court’s decision.
Mt. Gox Investment Fund, one of the largest creditors of the exchange, reportedly chose a repayment plan that would allow it to receive the majority of its lost funds by September. It is still being determined when other creditors can expect repayment in cryptocurrencies such as Bitcoin or fiat currency, though some estimates imply it could be several years.