Bankrupt exchange MtGox to start paying creditors ahead of schedule

Some clients will be able to receive compensation as early as this year

22.11.2023 - 12:02

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What’s new? The bankrupt bitcoin exchange MtGox may start paying creditors ahead of schedule, analyst Colin Wu said, citing the company’s letter. Thus, some customers received a notice that the bankruptcy trustee intends to start returning funds in cash before the end of this year.

Source: Twitter.com

What else is known? A total of 142 000 Bitcoins, 143 000 Bitcoin Cash, and 69 billion Japanese yen are held in the company's accounts. The letter reports that due to the large number of creditors and the few repayment options available, the repayment process cannot be accomplished in a short period of time and will continue in 2024.

In September, managing director Nobuaki Kobayashi reported that the repayment deadline was being pushed forward one year from October 31, 2023, to October 31, 2024. At that time, the company received permission from the Tokyo District Court to extend the deadlines for principal, early lump sum, and interim repayments.

However, it was reported that creditors who have already applied for repayments will start receiving funds at the end of this year, but specific deadlines for each individual user have not been set and may be changed depending on circumstances.

Mt.Gox, launched in 2010, was one of the first bitcoin exchanges in the world, accounting for up to 70% of trading volume. In 2014, it ceased operations due to insolvency: it turned out that in previous years, hackers had withdrawn 850 000 BTC belonging to 24 000 users from the platform due to a vulnerability.

The crypto community has repeatedly expressed fears that the payment of compensation to creditors MtGox will collapse the bitcoin rate, as they allegedly begin to sell massively the asset increased in price. In turn, analysts of the Swiss financial holding company UBS believe that most of the creditors of the exchange will not want to sell their BTC immediately after receiving it, and the impact of payments on the rate of the asset will be insignificant.

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