This Friday, through a statement, the closure of the payment registration process that Mt. Gox will carry out for the month of October was announced.
October looks like the tentative date when Mt. Gox will make pending payments to defrauded creditors from nearly a decade ago. However, a new delay is expected, as is usual in this situation that affects dozens of pioneer investors in the crypto market.
The statement considers that all forms of reimbursement (base, intermediate, and early lump-sum repayments) will be made until the last day of October 2023. They add that, with the permission of the Tokyo District Court, the date could be extended. The latter could mean a new episode of uncertainty for people waiting for the return of their funds.
Mt. Gox to Make Pending Payments to Its Users Fourteen Years Later
Now that Mt. Gox will make pending payments to its defrauded customers in 2014, the memories of that event are very vivid. At the end of 2022, the world’s second-largest centralized trading platform, FTX, went bankrupt. Previously, dozens of small and medium-sized exchanges had shut down in the middle of the crypto winter.
Such a scenario affects other large platforms equally, due to the mistrust of regulators. The US SEC and similar agencies in other countries are increasing pressure on heavyweight platforms such as Coinbase and Binance, which could lead to the bankruptcy of the companies behind those exchanges.
Nearly a decade ago, the exchange that is now set to return funds to its users suffered a massive hack. Between 650,000 and 850,000 bitcoins were stolen by hackers, which remains the biggest theft ever in that industry. Part of these funds were recovered by the authorities, and they will be directed toward the payment to users.
As a result, after years of controversy, delays, and pressure, Mt. Gox will make any remaining payments to registered users. The latter includes the clarification of benefits and type of payment.
Follow-up Steps
The return process will be carried out by the Rehabilitation Trustee. who will carry out the “necessary preparations” so that the Mt. Gox payments are operated satisfactorily. Such preparations include confirmation of selections for payment, as well as the exchange of information with banks. The latter includes contact with fund transfer providers, exchanges, and other payment-related platforms.
It should not be forgotten that the funds recovered from this breach remained in limbo for years. It was not until 2018 that a court in Japan approved the compensation plan.
Since then, delays and deadlocks have been the common denominator of this process. Judging by the recent statement, everything indicates that the slowness and obstacles will continue after the date set to close the refunds.
Either way, the payments to be made by Mt. Gox are closer than ever. It should be noted that the price of BTC at the time of the looting of the exchange was $700 per coin. Currently, the value of the coin increased by approximately 4,000%.
By Audy Castaneda
