Learn about the recent deadline for MT Gox creditors to enter repayment information and the expected distribution of Bitcoin, Bitcoin Cash, and fiat to early cryptonians.
The long-awaited deadline for MT Gox creditors to enter repayment information has passed, marking a significant milestone in the saga of the defunct crypto exchange. Almost a decade has passed since MT Gox filed for bankruptcy in February 2014, and approximately 10,000 crypto creditors around the world have been anxiously waiting for the resolution.
Over the past six months, creditors had to make complex selections, including whether to be paid in crypto or fiat, and which crypto exchange, address, bank account, or PayPal to receive their repayment. The deadline has been pushed three times due to the complexities of the new verification system, which often required a renewal of ID documents. However, this time, the deadline has not been extended any further.
As of April 6th, Tokyo time, creditors are now set to receive approximately 165,000 Bitcoin and the same amount in Bitcoin Cash, along with around half a billion dollars in fiat. For some creditors, this could be a substantial amount, considering that a Bitcoin in 2014 was worth around $1,000 at its peak and as little as $100 for much of 2013, whereas now it is valued at nearly $30,000.
The distribution of funds from MT Gox will depend on the complex selections made by each creditor, such as choosing between full and final payment or gradual payments to account for potential future recoveries. Some funds may also come from the seizure of assets belonging to Alexander Vinnik, the operator of BTC-e who played a significant role in laundering MT Gox hacked coins. New Zealand police seized NZD 140 million ($90 million) from Vinnik in 2020, and these funds are now subject to a restraining order as gox creditors may have an interest in them.
The majority of creditors are believed to have opted for a full and final settlement, and the repayment process has now entered its final stage. However, the exact timeline for when the payments will be made remains unclear. While the crypto part of the repayment process can be relatively fast, the MT Gox trustee has been receiving payments from creditors for years, so it is possible that the distribution could be slow to ensure the preservation of funds.
The fiat portion of the repayment is a smaller portion, but some early cryptonians may choose to use these funds to buy more crypto, while others may sell their crypto holdings. The trustee has not provided any clarification on the next steps or the timeline for the repayment process. Therefore, there is no confirmation or indication of how long the repayment process might take. However, after ten years of waiting, the end of the MT Gox saga is finally in sight for the goxers, although the actual timeline for repayment remains uncertain.