Mt. Gox Creditors Get Extra Time to File Claims for Payments

Mt. Gox creditors now have an extra month to register their claims, as the deadline has been postponed by another month to April 6, according to an official announcement.

The deadline for the distribution of assets to creditors has also been postponed by another month and will now begin on Oct. 31 instead of Sept. 30. The official document cited a variety of reasons for the deadline extension, including progress made by rehabilitation creditors in terms of selection and registration. Creditors may opt for a lump-sum payment, bank remittance, fund transfer service provider, or a cryptocurrency exchange or custodian.

Following the 2014 exchange hack, creditors have been waiting for years to be compensated for their losses. Mt. Gox, a Tokyo-based cryptocurrency exchange that once accounted for over 70% of Bitcoin transactions, filed for bankruptcy after thousands of Bitcoins were stolen.

In February, the Mt. Gox Investment Fund, the largest creditor of the defunct crypto exchange, chose to receive an early payout in Bitcoin rather than wait for a larger payment after a legal dispute. The bankruptcy trustee is not required to sell tokens to obtain fiat funds for the payment because the creditor also chose to be paid in BTC. The extension of the deadline means that other creditors have another month to choose between taking the lower amount now or waiting another nine years to receive the full amount.

The Mt. Gox creditor payout has been in the spotlight for some time, particularly as the value of BTC has skyrocketed since the exchange collapsed. There have been rumors about the impact of Mt. Gox creditors on the market if they choose to sell their holdings. However, according to a Bloomberg report, the biggest Mt. Gox creditors have no plans to sell their BTC.