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After months of waiting and the most recent hope that repayment will start trickling in for MtGox creditors, the wait is now billed to be elongated by approximately one month.
As detailed in an announcement pushed out by the defunct trading platform, the core deadlines for the rehabilitation plans as well as the repayment deadline have been pushed by exactly a month each. As Coinspeaker reported earlier, the defunct exchange’s rehabilitation Trustee issued a March 10 ultimatum for creditors to register their claims in order to gain access to their funds in due time. This deadline has now been pushed back to April 6. The initial timeline set for all funds to have been disbursed was set at September 30 but per the recent change, this will now be October 31.
The rehabilitation trustee was able to push for the postponement after security approval from a Judge per the announcement.
“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 September 30, 2023 (Japan time) to October 31, 2023 (Japan time) following the change of the deadline for the Selection and Registration,” the announcement reads.
The exchange is now asking creditors to file their claims on time as there are tons of requests which may generally take a long time to process. Per the announcement, early filing of claims through the approved registrations means will enable appropriate verifications and repayments.
There are notable delays that may also come into play in the push to get back the claims by MtGox creditors. These delays are hinged on trading platforms which have all unveiled different timelines it will take to process the repayment in general.
MtGox Creditors: a Tale of Many Investors
Bankruptcy is a very long process that is often dreadful for everyone involved. Besides the MtGox creditors, the crypto ecosystem has witnessed a series of bankruptcy cases over the course of the past year, throwing many investors into a similar fate as MtGox’s creditors.
From Celsius Network to Voyager Digital and now FTX Derivatives Exchange, the MtGox liquidation and the length of time it is taking investors to get back their funds might be a reflection of how long it will take these company’s creditors to get their own investment back from the firm.
In a surprising twist though, FTX Japan, one of the subsidiaries of the crypto behemoth, has received permission to grant its custody customers the room to withdraw their assets from the platform. The outfit was considered one of the four FTX entities that were adjudged as healthy and this move somewhat proves this claim.
This is a rare move and chances that a similar situation will occur for other bankruptcy victims remains unsure.