Mt. Gox Issues March 10 Ultimatum to Creditors

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by Mayowa Adebajo · 2 min read
Mt. Gox Issues March 10 Ultimatum to Creditors
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Mt. Gox creditors who suffered losses must register their information in an online rehabilitation claim filing system and choose a repayment plan.

Creditors from Mt. Gox have been told that they have until Friday, March 10 to register and indicate their preferred repayment method. The announcement, which was shared by Mt. Gox trustee Nobuaki Kobayashi, is in line with the efforts of the defunct exchange to compensate creditors for their losses. To this end, Kobayashi issued a reminder on Tuesday about the earlier January notice. 

According to the initial rehabilitation plan proposed in October, Mt. Gox creditors who suffered losses are supposed to have registered their information in an online rehabilitation claim filing system. That is by the end of January. Additionally, they are supposed to select a repayment method as well. However, for reasons undisclosed, Mt. Gox extended the registration period until this Friday.

Recall that 99% of creditors affected by the Mt. Gox crash had approved a draft rehabilitation plan in October 2021. And a month later, Kobayashi announced that the plan was “final and binding,” having received a verdict from a Japanese court.

Mt. Gox Creditors to Recoup Some of Their Losses

Going by experts’ calculations, losses from the collapse of the Mt. Gox exchange are estimated to be worth billions of dollars. But, now, there are plans to help some of its creditors recover some of their lost funds.

Creditors will choose between getting a lump-sum payment or a bank remittance. They could also opt to use a fund transfer service provider or any cryptocurrency exchange or custodian.

Meanwhile, it should be noted that there is no clear timeframe yet, for creditors to get their repayments. Neither is there a plain statement that indicates how creditors will be paid. That is, either in crypto or fiat.

Nonetheless, it is expected that the repayment process may take up to several years. And on top of that, will likely be paid in batches.

For what it’s worth, the latest update from Kobayashi may be the last announcement about the creditors’ rehabilitation plan.

Business News, Cryptocurrency News, News
Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

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