Mt. Gox's getting closer to paying off its debt to creditors

Will the users of the former Japanese crypto exchange get their money back?

Trustee of the Mt. Gox, which spectacularly went bankrupt a few years ago, released the latest information on its compensation plan and creditors' recovery on Wednesday. According to the acts, the reference period starts on September 15 this year. During this phase "assignment, transfer or succession, securing as security or otherwise disposing of rehabilitation claims is prohibited."

The deadline for submitting debt repayment applications is set for September 15th

Nobuaki Kobayashi, who is a trustee of the non-existent crypto exchange, confirmed that the period of time that creditors have to submit an appropriate application ends on September 15. Kobayashi also added that this is the deadline to file claims for funds lost during the collapse of one of the first cryptocurrency exchanges that disappeared from the market in 2014.

- After September 15, the trustee will stop accepting requests for transfer of claims procedures, the statement said.

The document did not specify the exact duration of this reference period, but stated that the first repayment of the creditors would take place after that period. It follows that everything will happen as foreseen in the earlier plan approved by roughly 99% of the eligible users affected by this depressing case.

In the files relating to the bankruptcy proceedings of MT. Gox also pointed out that if a notice of the transfer of ownership is filed during the reference period, the bankruptcy trustee may not be able to determine to whom the funds should be returned.

- This may result in creditors being unable to receive their repayments, the repayment date being significantly delayed than for other eligible creditors, or in the worst case the amount may be deposited with the Tokyo Legal Office in accordance with local Japanese laws and regulations - written further.

Earlier this week, rumors that appeared on Twitter about 137,000 BTC dropping by the trustee put a lot of pressure on the cryptocurrency markets. The creditors of the collapsed cryptocurrency exchange have strongly distanced themselves from speculation on social media.

Mt. Gox was one of the earliest cryptocurrency exchanges ever established. At its peak, it carried out over 70% of all transactions within the Bitcoin ecosystem. After a major break-in in 2011, the platform finally collapsed in 2014 due to alleged insolvency. The huge collapse of this cryptocurrency exchange affected about 24,000 creditors and resulted in the loss of as much as 850,000 BTC.

In November 2021, the bankruptcy trustee of this crypto exchange confirmed that the rehabilitation plan had been deposited in the Japanese court system. It is one of the last steps in a long process that began in 2018 with the submission of a petition by victims to be compensated for their lost funds.