Will payments start this month?
Payments to creditors of the crypto asset (virtual currency) exchange MT GOX (Mount Gox), which went bankrupt in 2014, are expected to start soon.
On January 6th, MT GOX announced a change in the registration deadline for payment procedures by creditors. Due to the change in the registration deadline on March 10, 2023, the deadline for basic payment, early lump sum payment, and interim payment has been changed from July 31, 2023 to September 30, 2023.
According to this change notice, after the changed registration deadline (March 10), “we will make payments as soon as possible.” The payment procedure includes selecting a payment method and registering payment recipient information, and it was explained that after the information was posted on January 6, work to confirm the registered details would begin.
Some creditors expect payment could come as early as this month.
connection:Mt. Gox extends creditors’ due dates and more
What is Mount Gox
A Tokyo-based cryptocurrency exchange that operated from 2010 to 2014. It was closed due to hacking damage, and this triggered the custom of “GOXing” when the exchange was hacked or the virtual currency was lost due to erroneous transmission.
Payments to MT GOX’s creditors will be made in accordance with the rehabilitation plan, which has been finalized by the Tokyo District Court on November 16, 2021. In the repayment procedure, the obligee must make the following selections and registrations:
- Choice of early lump sum repayment
- How to receive payment in money and registration of recipient information
- Choice of whether to receive partial payment of virtual currency receivables in bitcoin and bitcoin cash
- Registration of user information on virtual currency exchanges, etc. when receiving payment in virtual currency
MT GOX’s assets are approximately 69,397.6 million yen in cash and deposits, and virtual currency is 141,686 BTC (decimals omitted) and 142,846 BCH, as reported by the rehabilitation trustee in September 2019.
Creditors would receive 90% of the debt if they opted for the early lump sum payment. This amount is calculated to be about 21% of the assets locked on the platform when MT GOX was hacked in 2014 (850,000 BTC damage).
Otherwise, the company will have to wait for the civil bankruptcy proceedings to be completed, a process that is expected to take more than five years, according to sources.
According to the US virtual currency media CoinDesk, the exchange “Bitcoinica” (closed), which together is the largest creditor of MT GOX (about 20% of claims) and the MT GOX investment fund “MGIF” He chose to repay and decided to receive the receivables in Bitcoin. The decision appears to have eased concerns about massive Bitcoin selling pressure.
According to the reddit “MtGoxInsolvency” for MT GOX creditors, if you choose to receive your receivables in virtual currency and cash, the first 200,000 yen is Japanese yen (cash), the rest is about 71% virtual currency, 29 % will be paid in cash.
When receiving payment in virtual currency, the creditor does not directly receive the virtual currency, but the proxy receiver (exchange) designated by the rehabilitation trustee receives it on behalf of the creditor. SBI VC Trade and Bitbank have been appointed as representative recipients in Japan.
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