Mt. Gox Rehabilitation Plan Again Pushed by 3 Months

by Arnab Shome
  • Meanwhile, investment companies stepped in to buy claims from creditors.
Mt. Gox Rehabilitation Plan Again Pushed by 3 Months
By MtGox (MtGox.com) [Public domain], via Wikimedia Commons

The deadline for submitting rehabilitation plans for doomed crypto exchange Mt. Gox has been extended again.

According to an official announcement published on March 30, Nobuaki Kobayashi, trustee of the now-defunct exchange, received an order from a Tokyo District Court to extended the submission deadline to July 1, 2020.

The deadline for the rehabilitation plan was previously set for March 31, 2020.

“The Rehabilitation Trustee is currently formulating the rehabilitation plan, but as there are matters that require closer examination with regard to the rehabilitation plan, it has become necessary to extend the submission deadline for the rehabilitation plan,” the trustee noted.

Previously, the same deadline was pushed multiple times as a similar extension to the trustee of the defunct crypto exchange was granted last April, followed by another in October.

“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 March 27, 2020, the Tokyo District Court issued an order to extend the submission deadline for the rehabilitation plan to July 1, 2020,” the official announcement stated.

Fall of a mammoth

Once handling 70 percent of all Bitcoin trading, Mt. Gox was closed down in 2014 as it went bankrupt following financial woes. The problems of the Japanese exchange were initiated in late 2011 after the theft of 850,000 Bitcoin, then worth $450 million.

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

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

Meanwhile, the rehabilitation proposal also revealed that there might be an “insufficient amount” to settle all claims of the creditors.

The deadline for submitting rehabilitation plans for doomed crypto exchange Mt. Gox has been extended again.

According to an official announcement published on March 30, Nobuaki Kobayashi, trustee of the now-defunct exchange, received an order from a Tokyo District Court to extended the submission deadline to July 1, 2020.

The deadline for the rehabilitation plan was previously set for March 31, 2020.

“The Rehabilitation Trustee is currently formulating the rehabilitation plan, but as there are matters that require closer examination with regard to the rehabilitation plan, it has become necessary to extend the submission deadline for the rehabilitation plan,” the trustee noted.

Previously, the same deadline was pushed multiple times as a similar extension to the trustee of the defunct crypto exchange was granted last April, followed by another in October.

“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 March 27, 2020, the Tokyo District Court issued an order to extend the submission deadline for the rehabilitation plan to July 1, 2020,” the official announcement stated.

Fall of a mammoth

Once handling 70 percent of all Bitcoin trading, Mt. Gox was closed down in 2014 as it went bankrupt following financial woes. The problems of the Japanese exchange were initiated in late 2011 after the theft of 850,000 Bitcoin, then worth $450 million.

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

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

Meanwhile, the rehabilitation proposal also revealed that there might be an “insufficient amount” to settle all claims of the creditors.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6292 Articles
  • 79 Followers

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