According to a Mt Gox announcement, base, and intermediate payments will be moved back from July to September 2023.
After many years of waiting for their funds, creditors can now see a light at the end of the tunnel, albeit a slightly extended one. Creditors that were expecting to receive their first repayments in July, will now have to wait until September.
Creditors will first receive a base payment, and then also a lump sum payment. Another available option is to wait a further period, and then accept what could potentially be a larger sum. Payments are to be made in cryptocurrency, a bank deposit, or a combination of both.
According to a report by The Block, speculation has it that the recent change of date for crypto payments may be related to Kraken’s decision to exit the Japanese market. Creditors had the option to choose from several exchanges to receive their payments, with Kraken being one of them.
However, the exchange announced that it will be leaving Japan in January, causing some creditors to face difficulties in getting their exchange details verified in time for the previous deadline.
Many creditors have registered with multiple exchanges as a backup, but some are still waiting for their KYC to be completed.
While Kraken’s exit may not impact the majority of creditors, it could create issues for Japanese users looking to exchange their crypto for fiat currency and withdraw to their local bank accounts.
The Mt Gox bankruptcy, following a hack, goes all the way back to 2014. The current day FTX debacle might be argued to pale in comparison, given that 740,000 bitcoins were stolen from customers, along with 100,000 bitcoins belonging to Mt Gox itself.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.