Mt. Gox creditors to get their funds through Bitstamp, other exchanges

abdelaziz Fathi

The distribution of funds to creditors of the defunct crypto exchange Mt. Gox is set to kick off as the business’s Japanese bankruptcy trustee released a memo updating them of a new function and important deadlines.

Mt. Gox trustee, Nobuaki Kobayashi, is asking creditors to select a repayment method, register payee information online and indicate how they want to receive their repayments. The deadline for this selection and registration is January 10.

When payments will be made, and specific amounts were not outlined in the memo. However, the process is expected to take place at some point later in 2023.

As described in the notice, those who fail to complete the “selection and registration” process before the deadline will not be able to receive such repayments as the early lump sum. They will also forfeit their rights in a portion of the cryptocurrency rehabilitation claims, bank remittance payments, or remittance through a fund transfer service provider.

Kobayashi published additional explanatory materials including a notice concerning the amendment of the rehabilitation plan and acquired permissions. It also contains information on the financial situation of Mt. Gox, the income and expenditure statement, and a guide to the selection of a crypto exchange or custodian.

Interestingly, crypto exchange Bitstamp was appointed by Mt. Gox trustee as one of the designated crypto exchanges to assist in the repayment procedures to creditors. Bitstamp has released a complete description of how those affected can register to reclaim their digital assets through the exchange.

Bitstamp was approved, along with three other cryptocurrency exchanges, to assist creditors in receiving their assets. A creditor of Mt. Gox can choose their preferred cryptocurrency exchange and register as a user for the receipt of the relevant assets according to the repayment procedures under the rehabilitation plan.

Almost a decade after an attack forced the platform to shut down, Mt. Gox creditors were given the option to choose between bitcoin, cash or Bitcoin Cash to receive repayment. The process could make the frozen crypto assets liquid again, depending on the entitled users’ choices.

Those who chose to receive their repayment in bitcoin are reportedly posing a new selling threat to an already battered market. Even those who opt to get paid in fiat money are risking pressuring the market further as the trustee would supposedly liquidate an equivalent amount of bitcoin to pay out those interested in receiving cash.

However, Eric Wall, a Mt. Gox creditor, dismissed the rumors that all of the roughly 150,000 BTC sent to creditors would soon be offloaded into an already stressed bear market. He also confirmed that no payouts in crypto would occur soon.

In the tweet, Eric clarified that creditors have yet to register their wallet addresses or submit banking details where their assets will be sent to, which would be the first step in getting the repayment plan going.

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Interviews

Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.

Interviews

FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.

<