After years of waiting, creditors of the defunct cryptocurrency exchange Mt. Gox have reason to hope as the company confirms that it has begun processing the first round of payments to its creditors. This is a highly significant event to be followed in the month of April.
The community was previously informed that the deadline for payment was in March, but this was pushed back to April 6 at the last minute by Mt. Gox. Fortunately, this time there was no last-minute change of plans. On April 7th, Mt. Gox’s trustee announced that the deadline for creditors to provide information had been completed, and the exchange would begin the first payment process.
However, creditors will not receive their assets immediately but will have to wait for processing time.
The trustee stated that they are taking the final preparation steps and will then send coins to financial institutions and cryptocurrency exchanges, which will then send the coins to the creditors.
“Due to this, it is expected to take some time before the repayments begin.”
The deadline for this payment round is October 31st, but the trustee also noted that the deadline could be extended with the permission of the Tokyo District Court.
According to the accounting balance sheet, Mt. Gox’s trustee currently holds 142,000 BTC, 143,000 BCH, and 69 billion yen (equivalent to $510 million USD). However, there is no exact information on the amount to be paid in this round.
All we know is that the payment will be made in BTC, BCH, and fiat currency. The first 200,000 yen will be paid in Japanese yen, followed by payments in crypto – if the creditor chooses to receive it. The crypto payment includes 71% coins (BTC and BCH) and 21% cash.
The Mt. Gox incident, which caused losses of over 850,000 BTC, was one of the biggest cryptocurrency exchange hacks in history. The company filed for bankruptcy in 2014 and has since been working to repay its creditors. While this is a significant development, there is still a long way to go before creditors receive their full payment. However, this marks a step forward for the Mt. Gox creditors and the cryptocurrency industry as a whole.
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This article was republished from azcoinnews.com
