Mt. Gox, the now-defunct Japanese cryptocurrency exchange that suffered a massive hack in 2014, has issued a new ultimatum to its creditors. According to the announcement made by the exchange’s trustee, Nobuaki Kobayashi, creditors who suffered losses have until March 10 to register their information in an online rehabilitation claim filing system and choose their preferred repayment plan.
This move is in line with the exchange’s efforts to compensate its creditors for their losses. The initial rehabilitation plan, proposed in October 2021, required creditors to register their information by the end of January 2022 and select a repayment method. However, for undisclosed reasons, Mt. Gox extended the registration period until March 10.
Kobayashi‘s reminder about the deadline comes after 99% of the affected creditors had approved a draft rehabilitation plan in October 2021, which was later deemed “final and binding” by a Japanese court.
While the losses from the collapse of Mt. Gox are estimated to be worth billions of dollars, some creditors will soon be able to recover a portion of their lost funds. They will be given the option to choose between a lump-sum payment, a bank remittance, or using a fund transfer service provider, cryptocurrency exchange, or custodian.
However, there is currently no clear timeline for the repayment process, and it may take several years to complete. Additionally, there has been no statement on how the repayments will be made, whether in cryptocurrency or fiat. It is expected that the repayment process will occur in batches.
Kobayashi’s recent announcement may be the last update on the rehabilitation plan for Mt. Gox creditors. Therefore, affected creditors are advised to register their information before the March 10 deadline to ensure they can benefit from the compensation plan.
