The deadline for submitting redemption information for former cryptocurrency exchange Mt Gox has finally passed. From now on, the window for reimbursements to its creditors is open. However, they should not start right away.
Mt Gox will finally start payments
Mt Gox is a Tokyo-based cryptocurrency company that filed for bankruptcy in February 2014. It was also one of the first crypto exchanges to go bankrupt.. His creditors are about to receive their repayments.
Over the past six months, more than 10,000 Mt. Gox creditors have had to choose whether they want to be repaid in cryptocurrency or fiat. Also, they had to choose which crypto exchange, bank account, wallet address or PayPal account they wanted to get paid to. The deadline for providing this information was April 6. Now that it has passed, reimbursements should begin and go until October 31.
According to The Blockthe administrator noted that the deadline for making refunds could be extended with the permission of the Tokyo District Court.
How will the refund be made?
The trust authority said it would make preparations for the refunds. This will be done in coordination with the list of financial institutions including crypto exchanges. ” In light of this, expect it to take some time before the refund begins “said the administrator.
Mt Gox will redeem some portion of the 142,000 BTC ($3.9 billion), 143,000 BCH ($17.9 million) and 69 billion Japanese yen ($523 million) it holds.
Payments consist of a mix of bitcoin, bitcoin cash and fiat currency. The first 200,000 yen of each creditor’s claim will be paid in yen. For creditors whose claims exceed this amount, the counterparty will be paid with a mixture of approximately 71% crypto and 29% silver after initial payment. Provided of course that they have indicated that they want both types of currencies.
In 2014, Mt Gox said it lost 850,000 Bitcoins in an attack on its systems. The exchange was able to recover around 20% of the sum. But is this enough to compensate for the financial losses and especially the loss of confidence in the crypto industry?
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