- About a decade ago, in February 2014, the Tokyo-based exchange filed for bankruptcy.
- The repayments to debtors will now be made until October 31.
The window for reimbursements to creditors of the now-defunct cryptocurrency exchange Mt. Gox has officially opened with the passing of the deadline for inputting payback information. About a decade ago, in February of 2014, the Tokyo-based crypto exchange filed for bankruptcy, making it one of the first crypto exchanges to fail.
Over the course of the previous six months, over 10,000 crypto debtors from across the globe have been asked to specify whether they would like to be paid in cryptocurrency or fiat, and to whatever cryptocurrency exchange, address, bank account, or even PayPal account. The Mt Gox Trustee has said that since the April 6 deadline has passed, the repayments will now be made until October 31.
Collaborating With Financial Organizations
The Trustee announced his plans to prepare for the repayments in a letter dated April 7. He claimed that he would work with a variety of financial organizations, such as cryptocurrency exchanges and digital asset custodians.
The payments will be sent to the proper creditors through such platforms, as part of the process. The exchange claimed to lose 850,000 Bitcoins in 2014; however, the company has since recovered around 142,000 BTC, 143,000 BCH, and 69 billion Japanese Yen ($510 million), which is roughly 20% of the overall attack.
Fiat cash and cryptocurrencies, namely Bitcoin and Bitcoin Cash, will be used to settle transactions. Each creditor’s first claim will be paid in Yen for the first 200,000 yen ($1520). The user will get 71% cryptocurrency and 29% fiat currency if the claim is more than the original amount and the creditor has chosen to be paid in both cryptocurrencies and fiat currency.
