One of the former cryptocurrency exchanges, which ended its activity in 2014 and left many victims behind, Mt. Gox set a new date for his creditors. Once known as the world’s largest Bitcoin exchange, Mt. Gox’s victims will be able to register until March 10 to receive payment. Here are the details…
Mt. Gox sets new date in compensation process
cryptocoin.com As we have reported in many of our news before, Mt. Gox was one of the largest exchanges in the early years of Bitcoin adoption. However, in February 2014, the stock market suffered a huge loss. The exchange suspended withdrawals in early February 2014, claiming it had discovered suspicious behavior in crypto wallets. Hundreds of thousands of Bitcoins were lost by the exchange. The number of coins reported as missing ranged from 650,000 to 850,000. At the end of the month, the company suspended withdrawals and stopped trading. This led to a 36 percent drop in Bitcoin price by the end of February, meaning one Bitcoin dropped to around $540.
Local and international authorities have located around 200,000 Bitcoins, resulting in an unstable market. Mt. Gox filed for bankruptcy in Tokyo District Court, after which the company was ordered to be liquidated in April 2014. Then Mt. Gox’s assets are placed at an address containing more than 200,000 Bitcoins and Bitcoin Cash. Some of the Bitcoin was sold before the upcoming Bitcoin release. Mt. Gox trustee Nobuaki Kobayashi sold 24,658 BTC (worth $260 million at the time) at a creditors meeting in 2018. In 2022, Kobayashi announced the remaining assets of Mt Gox and also Mt. He outlined Gox’s plan to pay its investors.
Now Mt. Gox announced that the registration process of those who will receive payments from the exchange where BTCs and many cryptocurrencies were stolen will end on March 10. Kobayashi stated that creditors have until March 10, 2023, to indicate their preferred payment method. According to the file, those who do not complete the “selection and registration” process by March 10 will not be able to benefit from the early lump sum refund. It will also not be able to receive refunds, bank transfers, or any other payments through other money transfer companies for some of their cryptocurrency requests.
Mt. Gox holds $3.18 billion worth of Bitcoin
As a result, in October 2021, Mt. Gox announced a rehabilitation plan to return some of the recovered BTC to investors who lost their holdings. However, a specific payment schedule has not been determined since then. The registration process for distribution of assets to customers was expected to end on January 10. It is estimated that the compensation process targets around 10,000 customers worldwide.
Kobayashi had suggested Kraken for payment. However, BitGo and Bitstamp were recommended after the exchange ended its service in Japan. However, people who choose Bitstamp will have to wait up to 90 days before trading coins. Currently Mt. Gox has 142,000 Bitcoins. This equates to $3.18 billion at the current exchange rate. Similarly, BCH, BSV and BTG are also in the portfolio of the exchange.
