Mt. Gox Reimbursements Won't Coincide With Ethereum Shanghai After All – CryptoM...

The registration deadline for Mt. Gox creditors to file their claims has been postponed by another month. Creditors now have until April 10 to register their claims, per the official announcement. 

Moreover, the distribution deadline for the repayment of assets to creditors has also been pushed back by another month, starting from October 30 instead of September 30.

Another Mt. Gox Plot Twist

The official document cited various circumstances, such as the progress made by rehabilitation creditors concerning the Selection and Registration process, as the reason for the deadline shift. 

Creditors may opt for a lump-sum payment, bank remittance, fund transfer service provider, or use a cryptocurrency exchange or custodian to receive their repayment.

Since the exchange’s hack in 2014, creditors have waited years to be compensated for their losses. Mt. Gox was once a significant player in the cryptocurrency exchange market, accounting for over 70% of Bitcoin transactions. However, after the hack, thousands of Bitcoins were stolen, and the exchange filed for bankruptcy shortly after.

The Mt. Gox Investment Fund, the largest creditor of the defunct crypto exchange, received an early payout in Bitcoin rather than wait for an even larger payment through a legal battle. This early payout meant that creditors received around 90% of the amount due to them. 

As a result, the bankruptcy trustee doesn’t have to sell tokens to acquire fiat funds for the payment since creditors opted to be paid in BTC.

What Will Creditors Decide?

The extended registration deadline would allow other creditors an extra month to decide whether to take a cut of their due amount or wait another nine years to receive the total amount.

The Mt. Gox creditor payout has been the subject of speculation for some time, particularly since the value of BTC has increased many times since the exchange went bust. 

In addition, there have been concerns about the market’s impact if creditors decide to sell their holdings. However, according to a Bloomberg report, the largest Mt. Gox creditors have no plans to sell their BTC.

Creditors may opt for different payment methods, including using a cryptocurrency exchange or custodian. However, the prolonged wait for repayment has been frustrating for creditors, and the decision to accept a cut or wait for the full amount remains up to them. 

However, given the current market situation, the largest creditors will likely hold onto their BTC holdings. The delay also ensures none of the funds are issued when Ethereum Shanghai hits the network. Both events coinciding would inject tremendous market liquidity and likely trigger a massive sell-off. 

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