The administrator of Mt. Gox, Nobuaki Kobayashi, announced on September 21, 2023 that the deadline for repayments to creditors of the cryptocurrency exchange would be extended to October 2024.
This decision is a new blow for creditors. They have been waiting for several years for reimbursement of their funds lost during the bankruptcy in 2014 of the platform founded by the sulfurous Mark Karpeles.
How did Mt. Gox become indebted for 850 BTC?
In February 2014, Mt. Gox lost 850 BTC in a security breach. The exchange filed for bankruptcy in March 000, and Kobayashi was appointed administrator in July 2014.
Since then, Kobayashi has been working to recover the lost funds and repay them to creditors. It has already repaid more than 100 creditors, but there are still around 000 creditors to repay.
In a letter to creditors, Kobayashi explains that extending the deadline was necessary to allow him to complete the process of recovering lost funds. He also states that the extension would allow creditors to prepare for the repayment process.
Furthermore, Kobayashi's decision remains highly criticized by certain creditors. The latter believe that it is further proof of the inefficiency of the administration of Mt. Gox.
The reasons for the postponement
Kobayashi cited several reasons for extending the refund deadline:
- The need to complete the process of recovering lost funds;
- The need to allow creditors to prepare for the repayment process;
- The need to give Kobayashi more time to resolve legal and administrative issues related to the Mt. Gox bankruptcy.
Reactions from creditors
Kobayashi's decision appears to be a terrible disappointment to creditors. Some express frustration and anger, while others say they are willing to wait another year to receive their refund.
Additionally, it is unclear when Mt. Gox's creditors will receive their full repayment. Kobayashi, on the other hand, reassures that he hoped to be able to start repaying all creditors in 2025.
However, it is possible that the deadline for refunds will be extended again. Especially, if Kobayashi encounters unexpected obstacles in the process of recovering lost funds.
The decision to extend Mt. Gox's repayment deadline is a setback for creditors. They have been hoping every day to be able to recover their funds for years. It remains to be seen whether Mt. Gox will be able to repay creditors on time.
The wait is even longer when we know that the capital gains they will realize will be very significant.
Note: This is not investment advice. Always do your own research. All investments involve risks.
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