The distribution of funds to creditors of the defunct crypto exchange Mt. Gox is set to kick off as the business’s Japanese bankruptcy trustee released a memo updating them of a new function and important deadlines.
Mt. Gox trustee, Nobuaki Kobayashi, is asking creditors to select a repayment method, register payee information online and indicate how they want to receive their repayments. The deadline for this selection and registration is January 10.
When payments will be made, and specific amounts were not outlined in the memo. However, the process is expected to take place at some point later in 2023.
As described in the notice, those who fail to complete the “selection and registration” process before the deadline will not be able to receive such repayments as the early lump sum. They will also forfeit their rights in a portion of the cryptocurrency rehabilitation claims, bank remittance payments, or remittance through a fund transfer service provider.
Kobayashi published additional explanatory materials including a notice concerning the amendment of the rehabilitation plan and acquired permissions. It also contains information on the financial situation of Mt. Gox, the income and expenditure statement, and a guide to the selection of a crypto exchange or custodian.
Interestingly, crypto exchange Bitstamp was appointed by Mt. Gox trustee as one of the designated crypto exchanges to assist in the repayment procedures to creditors. Bitstamp has released a complete description of how those affected can register to reclaim their digital assets through the exchange.
Bitstamp was approved, along with three other cryptocurrency exchanges, to assist creditors in receiving their assets. A creditor of Mt. Gox can choose their preferred cryptocurrency exchange and register as a user for the receipt of the relevant assets according to the repayment procedures under the rehabilitation plan.
Almost a decade after an attack forced the platform to shut down, Mt. Gox creditors were given the option to choose between bitcoin, cash or Bitcoin Cash to receive repayment. The process could make the frozen crypto assets liquid again, depending on the entitled users’ choices.
Those who chose to receive their repayment in bitcoin are reportedly posing a new selling threat to an already battered market. Even those who opt to get paid in fiat money are risking pressuring the market further as the trustee would supposedly liquidate an equivalent amount of bitcoin to pay out those interested in receiving cash.
However, Eric Wall, a Mt. Gox creditor, dismissed the rumors that all of the roughly 150,000 BTC sent to creditors would soon be offloaded into an already stressed bear market. He also confirmed that no payouts in crypto would occur soon.
In the tweet, Eric clarified that creditors have yet to register their wallet addresses or submit banking details where their assets will be sent to, which would be the first step in getting the repayment plan going.