Creditors of the defunct cryptocurrency exchange Mt. Gox have received more time to select and register how they wish to receive compensation from the company.
According to a document from the exchange’s trustee Nobuaki Kobayashi, the registration deadline, which was previously set as January 10, 2023, has been extended to March 10 (Japan time) after receiving approval from the court.
“The deadline for the Selection and Registration was January 10, 2023 (Japan time) but having obtained the permission of the court, the Rehabilitation Trustee has changed the deadline to March 10, 2023 (Japan time), considering various circumstances such as the progress by rehabilitation creditors in respect of the Selection and Registration,” the trustee wrote.
Kobayashi urged creditors to complete the registration process before the new deadline, adding that those who failed to complete their selection would not receive compensation or might have to submit additional documents to the company’s head office.
The trustee noted that those who have already registered their selections do not have to do it again. Although they can change their selection before the new deadline, the update discouraged creditors from doing so to make the confirmation process smooth.
Furthermore, the extension affected the distribution deadline as creditors would have to wait longer to receive compensation. The repayment deadline was postponed from July 31 to September 30, 2023.
“Having obtained the permission of the court, the Rehabilitation Trustee has also changed the Base Repayment Deadline, Early Lump-Sum Repayment Deadline, and Intermediate Repayment Deadline from July 31, 2023 (Japan time) to September 30, 2023 (Japan time) following the change of the deadline for the Selection and Registration.”
Meanwhile, Mt. Gox became insolvent in 2014 after losing 850,000 bitcoins to hackers. Since then, the company has been working on how to repay affected customers.
The value of BTC stolen from the exchange was worth $473 million at the time of the incident, but the assets are worth over $14 billion at current prices. However, the trustee will not pay 850,000 BTC to creditors since the exchange could not recover the stolen assets.
Nonetheless, creditors are expected to receive more than 140,000 BTC, worth around $2.3 billion.