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

Retail FX

From Backtesting to Arbitrage: Practical Applications of AI in the World of Retail Trading

In this article, the industry leaders delve into the transformative role of AI in trading.

Digital Assets

FTX claim value soars to 92%, creditor sued for reneging on $58M deal

Attestor Capital, a London-based investment firm holding significant FTX bankruptcy claims, has initiated legal action against a Panamanian company called Lemma Technologies.

Digital Assets

OKX to remove Tether trading pairs ahead of MiCA

OKX, the world’s fourth-largest cryptocurrency exchange by trading volume, is discontinuing support for tether (USDT) trading pairs in the European Economic Area (EEA).

Digital Assets

Changpeng Zhao is back with new project post-Binance era

Changpeng Zhao, the founder and former CEO of Binance, hinted at a new educational project on Monday.

Digital Assets

IcomTech owners convicted in crypto Ponzi scheme

A New York jury has found David Brend and Gustavo Rodriguez, former promoters of the crypto mining and trading company IcomTech, guilty of wire fraud conspiracy.

Fundamental Analysis

Global FX Market Summary: USD, Gold, FOMC, March 18th ,2024

Central banks take center stage this week with the FOMC meeting being the most anticipated as its decisions could impact currencies and gold prices.

Technical Analysis

EURUSD Technical Analysis Report 18 March, 2024

EURUSD currency pair can be expected to fall further toward the next support level 1.0850 (former minor resistance from the end of February).

Executive Moves

NAGA founder Ben Bilski steps down following Capex.com acquisition

Ben Bilski, German tech entrepreneur and founder of NAGA Group, has parted ways with the company, stepping down from his executive role as Chief Information Officer.

Fintech

Barchart integrates Bid, Offer, and Hedge management into cmdtyView

Streamlining operations for commodity merchandisers, traders, brokers, and analysts, the integrated Bid, Offer, and Hedge management within cmdtyView, Barchart further positions its trading platform as a central hub.

<