Next step for repayment to Mt.Gox creditors

The recovery system of the hacked bitcoin exchange Mt.Gox now has a new feature in the creditor repayment process, according to a notice published Oct. 6.

Creditors are now able to choose a repayment method and register the payee’s data in the online registration system. The deadline for this selection and registration is January 10, 2023.

As described in the notice , creditors must refer to several explanatory documents.

This includes:

• a notice of change in recovery plan
• issuing authorizations for payments
• Information about the financial situation of the failed bitcoin exchange Mt.Gox
• the income and expenditure account
• a guide to choosing a crypto exchange or custodian for payout later

In order to register in the system, creditors need to register and do the selection and registration themselves.

If this is not done by the deadline, they will not be able to receive repayments such as the preliminary lump sum payment, part of the cryptocurrency repayment claims, bank transfers or transfers through a money transfer service provider.

The announcement indicates that most of the Mt. Gox saga is coming to an end. However, it will likely take years for all funds to be transferred to creditors, one creditor explained.

Are the Mt.Gox paybacks nearing completion?

The Mt. Gox case has been a roller coaster ride for the crypto market.

Ever since creditors voted on the trustee’s plan for the recovery process, the crypto community has been following developments closely.

Eventually, the vote resulted in about 140,000 BTC being released for repayment to creditors.

The Tokyo Court of Justice upheld the recovery plan in October 2021, and the Board of Trustees approved it a month later.

After these approvals, there were some concerns about the mass Bitcoin withdrawals potentially leading to a weaker market.

However, a Mt. Gox believer dismissed any threat of Bitcoin flooding the market.

The entire process of reversal is supported by Bitstamp.