Wednesday, October 5, 2022

Mt.Gox Exchange to Set BTC Repayment Date in Due Course

A notice addressed to creditors has been released by the defunct Japanese-based bitcoin exchange Mt.Gox announcing the update in repayment.

According to the news, creditors and customers will start receiving their funds at an undisclosed date which will be set in due course. The notice was drafted by Nobuaki Kobayashi, the trustee in charge of the rehabilitation process.

Mt.Gox was a bitcoin exchange based in Tokyo, specifically the City of Shibuya. As of the time when it was established, it was the largest crypto exchange in the territory. Mt.Gox was widely known for trading the US dollar for bitcoin (BTC). 

Only a few months after, bad actors penetrated its system and caused a fraudulent withdrawal of about 850,000 BTC. Consequently, Mt.Gox owed creditors 141,686 bitcoin, 142,846 bitcoin cash (BCH) and 69,776,002,441 yen.

The breach caused many customers to initiate huge withdrawal transactions on the platform.

As a result, the Japanese exchange had to suspend trading including withdrawals on its platform like the recent bankrupt Celsius. Shortly after that, the exchange shut down its operations totally and went offline with many tough situations surrounding it.

Mt.Gox Exchange Rumored BTC Release

A few days ago, there were rumors that the BTC exchange which shut down about eight years ago planned on releasing a massive amount of bitcoin into the market.

The thought of the digital coin release sent shivers into the spines of many crypto players owing to the recent dwindle in the price of BTC. The crypto community believed that the current low price of bitcoin will further plummet when Mt. Gox releases its own.

Based on the gathered information, the exchange would commence repayment soonest with the release of 137,000 BTC.

Instead, one of the Mt.Gox creditors identified as Eric Wall denied the release of all 137,000 BTC saying that the repayment process is only starting in August.

In support of Wall’s declaration, the published notice urges creditors to make or transfer their claims before September 15th. Any claim or transfer made after that date will not be processed as the rehabilitation process continues.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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