MT Gox Pushes Back Repayment – Trustnodes

The never ending goxing continues with a deadline to enter re-payment details pushed back from January 10 to March 10.

“The deadline to select a repayment method and to register payee information in accordance with the Rehabilitation Plan (“Selection and Registration”) is January 10, 2023 (Japan time),” the Trustee said. “However, having obtained the permission of the court, the Rehabilitation Trustee has changed the deadline to March 10, 2023 (Japan time).”

There have been numerous problems with the re-identification requirements as some creditors have pointed out you have to renew your ID document for it to work even if it has not expired.

The circa 10,000 MT Gox creditors around the globe had already provided their KYC and ID documents at least twice since 2014, but to waste their money the Trustee decided they should do it again.

They now have until March to do so, allowing them to enter their bitcoin address – either one they control or on exchanges like Kraken.

They also have to add their bank details where the fiat can be sent amounting to about $250 million worth of Japanese Yen.

This was secured by the MT Gox Trustee selling half a billion dollars worth of bitcoin in 2018, an amount that has now halved because Yen is significantly down against the dollar, but it would have stayed at least constant and it may have been up if it was kept in bitcoin.

They are also to receive about 135,000 bitcoin and an equivalent amount in bitcoin cash, down from the initial 200,000 that MT Gox handed to the bankruptcy Trustee.

This amount is set to be paid in September because the dinosaurs need six months to enter some account details. The Trustee, Nobuaki Kobayashi, said:

“Having obtained the permission of the court, the Rehabilitation Trustee has also changed the Base Repayment Deadline, Early Lump-Sum Repayment Deadline and Intermediate Repayment Deadline from July 31, 2023 (Japan time) to September 30, 2023 (Japan time).”

The difference is just three months and after eight years, whether July or September hardly matters, with it being far more important the fact that this is now happening.

The bankruptcy of what was once the biggest and almost the sole bitcoin exchange, is now coming to a close, just as numerous new bankruptcies open in crypto, including FTX.

These too will probably take almost a decade as the legal system and the wider bureaucracy shelters itself from the disruption around them to still run mainly on paper and often on very archaic processes.

The longest forced crypto holding in history – it has only been 14 years – has however worked out very well for creditors who have 100x-ed their total initial investment in what may well be the most profitable bankruptcy, maybe in history.