Mt. Gox Trustee Extends Repayment Deadline to October 2024

The Rehabilitation Trustee for the cryptocurrency exchange Mount Gox has officially changed the repayment deadlines for the Base Repayment, the Early Lump-Sum Repayment, and the Intermediate repayment from October 31, 2023, to October 31, 2024.

What Happened To Mt Gox?

Mount Gox is a Tokyo-based virtual currency platform that was launched in 2010. It soon became one of the largest Bitcoin exchanges by 2013, servicing 70% of all bitcoin trades worldwide. However, operations stopped and the company filed for bankruptcy protection in 2014 after losing about 850,000 bitcoins, worth $460 million (approximately 52.6 billion yen) at the time.

Currently, the exchange is set to distribute about 142,000 BTC ($3.9 billion), 143,000 BCH ($31.3 million) and 69 billion Japanese yen ($467 million) that it still holds. The first 200,000 yen worth of each creditor’s claim will be paid in yen.

The repayment process to its creditors is being carried out based on the rehabilitation plan approved by the Tokyo District Court on November 16, 2021.

Reason for the Delay

In a press release the Trustee, Nobuaki Kobayashi, explained that the shift in deadline was made after considering the time required for rehabilitation creditors to provide essential information.

The change will likely provide more time to verify information, engage in discussions, share information with banks, fund transfer service providers and designated cryptocurrency exchanges involved in the repayments.

He also added:

“With the permission of the Tokyo District Court, the Rehabilitation Trustee has changed the deadline of the base repayment, the early lump-sum repayment, and the intermediate repayment from October 31, 2023 (Japan Time) to October 31, 2024 (Japan Time), respectively”.

Despite the delay, rehabilitation creditors who have already provided the Trustee with the required information might receive payments as early as the end of this year, with repayments being made sequentially, However, as the schedule is still subject to change, the exact timing for each creditor has not yet been determined.

For creditors who are yet to provide the required information, the rehabilitation trustee urged them to comply because the commencement of their payments depends on the necessary data.

The Trustee further apologized for any inconvenience the extension in deadlines may cause, and assured creditors that they are committed to making repayments as soon as possible.