Mt. Gox Rehabilitation Plan Further Pushed till December 15

The deadline of the rehabilitation process for the creditors of now-defunct crypto exchange Mt. Gox has been pushed again by two more months, until December 15, 2020.

Nobuaki Kobayashi, the attorney in charge of the rehabilitation process, has received the extension order from the Tokyo District Court a day before the previous deadline of October 15. 

Join your industry leaders at the Finance Magnates Virtual Summit 2020: Register and vote for the FMLS awards

Kobayashi approached the court, citing that “there are matters that require closer examination with regard to the rehabilitation plan.” These are the same reasons cited before for deadline extension.

“In light of the foregoing, the Rehabilitation Trustee filed a motion to seek an extension of the submission deadline of the rehabilitation plan at the Tokyo District Court, and, on October 14, 2020, the Tokyo District Court issued an order to extend the submission deadline for the rehabilitation plan to December 15, 2020,” the official notice stated.

The Never-Ending Rehabilitation Process

This move did not come as a surprise as the Mt. Gox rehabilitation process deadline was pushed several times before. However, the extension order came as there were growing speculations in the crypto market about the distribution of 150,000 Bitcoins by the Mt. Gox trustee that might be liquidated, bringing the price down.

Mt. Gox was the largest Bitcoin exchange at its peak, handling 70 percent of all global Bitcoin transactions. However, it shuttered services as it could not recover from the impact of its hack.

The former CEO of the exchange was also convicted in a Japanese court for tampering with records of the exchange.

Without any set future for the rehabilitation process, multiple companies now jumped in to purchase claims from the Mt. Gox creditors against a fraction of their original claims.

As Finance Magnates reported earlier, New York-based Fortress Investment Group offered $1,300 for each Bitcoin or 88 percent of its estimated account value to buy the creditors’ claims.

Source: Read Full Article