Rehabilitation Trustee Initiates the Next Phase in Mt Gox Repayment Plan

In 2014, the Tokyo-based exchange Mt. Gox was forced into bankruptcy as cyber attackers made away with about 850,000 Bitcoins. A lengthy legal procedure spanning over 8 years ensued as Mt Gox creditors demanded compensation in lost Bitcoin.

A civil rehabilitation plan was drafted by Mt.Gox and approved by the Tokyo district court and a rehabilitation trustee was appointed to oversee the repayment procedures.

Nobuaki Kobayashi, the rehabilitation trustee, issued an update on Wednesday, reiterating the commitment of the court to make repayments according to the approved rehabilitation plan.

According to the file, the Assignment, etc. Restriction Reference Period scheduled for September 15 marks the beginning of the prohibition of rehabilitation claims of creditors. This does not imply that repayment commences on the said date.

Creditors are encouraged to submit claims regarding lost funds before the expiration of the time limit of submission. Any transfer claim submission during the restriction phase will not be processed by the rehabilitation system and the claimant may experience a delayed repayment.

Furthermore, all creditors will receive a base payment and the remainder of their funds will be disbursed through an early lump sum payment or they will receive through other processes approved by the court. However, the base repayment date is yet to be communicated.

Presently, the rehabilitation trustee clearly shows signs he is preparing to make repayments, but there is no official repayment date. Bankruptcy proceedings are a bit more complicated than we thought. Getting thousands of creditors to fill in the required information including banking details and exchange information to facilitate the disbursement of funds can take several weeks. Despite the rumours, Mt. Gox's payout date has not been officially disclosed.