Mt Gox Begins Long-Awaited Crypto Repayments: Creditors Anticipate $3.9 Billion in BTC – Coinpedia Fintech News
Mt Gox initiates repayment process for creditors, scheduled to be completed by October 31, 2023.
Creditors will receive a mix of cryptocurrencies and fiat money, with 71% crypto and 29% cash after initial yen payment.
The repayment window for Mt Gox creditors has finally opened, with a deadline for repayments set for October 31, 2023. After years of waiting, creditors of the defunct crypto exchange can now look forward to receiving their share of the holdings, which include 142,000 BTC ($3.9 billion), 143,000 BCH ($17.9 million), and 69 billion Japanese yen ($523 million). However, the trustee has warned that the process could take some time, and the deadline may be subject to change.
Coordinating with Financial Institutions
In a letter dated April 7, the Mt Gox Trustee outlined the plan for base, intermediate, and early lump sum repayments, which can be paid out up until the October deadline. The Trustee is currently coordinating with a list of financial institutions, including cryptocurrency exchanges, to facilitate the distribution of repayments to creditors.
“In light of this, it is expected to take some time before the repayment is commenced,” the Trustee stated, noting that the Tokyo District Court could grant permission to extend the deadline for making repayments.
Mixed Payments: Crypto and Fiat
The repayments to Mt Gox creditors will be made in a mix of cryptocurrencies (bitcoin and bitcoin cash) and fiat money. The first 200,000 yen worth of each creditor’s claim will be paid in yen. For claims exceeding this amount, the remaining balance will be paid out as a mix of approximately 71% cryptocurrency and 29% cash, after the initial yen payment.
The opening of the repayment window marks a significant milestone in the long and complicated history of the Mt Gox saga. As creditors eagerly await the return of their lost funds, the ongoing repayment process serves as a reminder of the importance of transparency, security, and regulatory compliance within the cryptocurrency industry.
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