Once the world’s largest Bitcoin exchange, handling over 70% of all Bitcoin transactions in 2013, Mt. Gox’s downfall in 2014 sent shockwaves throughout the cryptocurrency community.
Now, almost a decade after the infamous hack, the defunct cryptocurrency exchange has released a new statement announcing that the registration window for creditors to provide repayment information has officially closed.
The update from the rehabilitation trustee, Nobuaki Kobayashi, outlines the next steps in the ongoing process to repay those affected by the largest cryptocurrency heist in history.
According to the statement, the process of “base repayment, intermediate repayment and early lump-sum repayments” will be carried out until October 31, 2023. However, the final deadline could be extended with the permission of the Tokyo District Court.
Kobayashi reassured creditors that the necessary preparations for repayment would be made, including the confirmation of repayment selections and sharing the relevant information with banks, fund transfer providers, cryptocurrency exchanges, and other custodians involved in the repayment process.
The repayment process is expected to take some time before it commences, as the rehabilitation trustee needs to ensure all necessary precautions and verifications are in place.
Mt. Gox’s closure in 2014 followed a massive hack, resulting in the loss of 850,000 Bitcoin – the largest cryptocurrency theft to date, even surpassing the FTX catastrophe in November 2022.
The protracted process of compensating creditors has seen multiple delays and setbacks since the Japanese court approved a compensation plan in 2018.
In March 2020, Kobayashi introduced a new system for creditors to claim the remaining funds by submitting proof of claim through bank statements, transaction records, and identification documents.
The deadline for submission was initially set for October 2020 but was later extended to December. The total claims received amounted to nearly $16 billion, exceeding the available funds for repayment.
In a significant development, the Mt. Gox Investment Fund, the largest creditor, opted for an early payout in Bitcoin in February 2023, agreeing to receive 90% of the owed amount instead of waiting longer for a potentially larger payment.
