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Mt. Gox trustee sets Bitcoin creditor claims deadline ahead of $3bn BTC payout

By Daniela Ešnerová

13:11, 1 September 2022

Mt. Gox logo
Mt. Gox creditors have two more weeks to submit their rehabilitation claims. – Photo: ShutterStock

Former clients of defunct Japanese cryptocurrency trading platform Mt. Gox, who were affected in a 2011 hack, have two more weeks to submit their claims in a rehabilitation process, Mt. Gox trustee wrote to creditors on Wednesday.

The Mt. Gox trustee Nobuaki Kobayashi, who is in charge of redistributing the stolen funds, pinned the beginning of a restriction period, during which he will stop accepting creditors' claims, to 15 September 2022. 

The restriction period will end when the base repayments deadline is reached. The end of the restriction period will be set “in due course,” Kobayashi wrote.

BTC to US Dollar

In 2011, some 840,000 bitcoins (BTC) were stolen from the Mt. Gox platform which at the height of its operations handled 70% of all BTC trading worldwide. Three years later, the company managed to recover some 140,000 BTC and these coins have been locked in litigation since.

As the repayment process moves to a next stage, Mt. Gox creditors will be prohibited from assigning, transferring, succeeding their rehabilitation claims; providing their rehabilitation claims as collateral, or disposing of these claims by other means from 15 September. 

After this date, Kobayashi will also “cease accepting applications for claim transfer procedures”.

While the claimaints are getting closer to getting their refunds, some suspect that the actual repayments may not be imminent. 

“The trustee is not yet ready to pay out. There will be a KYC (know your customer) process, he has to explain how payouts will happen etc, he has to collect bank account data and so on,” a Mt. Gox creditor, Django Bits, wrote on Twitter.

XRP/USD

0.62 Price
+2.650% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

SOL/USD

179.75 Price
+2.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2651

ETH/USD

3,333.84 Price
-4.230% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.13 Price
-1.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

“This will drag for months if not years. Nothing the trustee does is quick,” he added.

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Mt. Gox creditors planning to HODL

In the recent weeks, some crypto traders and commentators took to social media to express fears that once Mt. Gox creditors recieve their refunds, they could rush to sell their BTC causing further selling pressure on the crypto king, which is currently trading below $20,000.

The total amount to be repaid - some 140,000 bitcoins - is now worth close to $3bn.

But a recent poll conducted on Reddit suggests that these fears may be overblown. Most of the Mt. Gox creditors are not planning on selling their refunded bitcoins, the survey revealed. Fifty-six percent of creditors stated they would not sell their coins.

Another 36 % said they would sell their BTC for cash and a further 8 % claimed that they would trade their returned bitcoins for other cryptocurrencies. A total of 486 creditors voted in the poll.

“I didn't wait eight years to sell in a bear market,” one creditor commented.

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-265.55 -0.400%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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