Mt. Gox compensation plan deadline extended
Attorney Nobuaki Kobayashi is revamping the exchange’s rehabilitation plan and wants more time
All the users who are still waiting for their assets to be returned by the trustee of the failed and defunct cryptocurrency exchange Mt. Gox will have additional time to send their requests. The company’s trustee, Nobuaki Kobayashi, has decided to extend the deadline that was originally announced on the Mt. Gox website and that was set for March 30. Kobayashi just filed a motion with the Tokyo District Court to request an extension on the deadline, which the court approved and allowed the deadline to be moved to July 1, 2020.
This is not the first extension request that is filed by Kobayashi; he did the same back in April 2019 and the deadline was subsequently pushed to October 2019. To pay the corresponding assets, a civil rehabilitation plan was presented to Japanese courts back in June 2018, but it was not until March 24, 2020, that Koyabashi finally presented a draft of this plan.
Mt. Gox started back in 2011 as an exchange, and in 2014, it suffered a massive hack that resulted in the loss of 850,000 Bitcoin (BTC), approximately $460 million at the time of the theft. Right now, those assets are worth $5.5 billion. At least 24,000 creditors who were holding cryptocurrency lost their assets.
In this proposal that Kobayashi presented this month, all users of the defunct platform who had BTC, Bitcoin Cash (BCH), fiat currency and any other digital currency could have their claims honored, but payouts might be in fiat, not in the original digital asset requested. All the funds that are meant to be returned will first be allocated toward the rehabilitation proceedings and then paid to its respective creditors.