Mt. Gox deadline for rehabilitation plan extended again

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The deadline for submission of a plan for the rehabilitation of defunct cryptocurrency exchange Mt. Gox has been extended again, leaving investors with a longer wait for details on proposals to return their money.

Trustee Nobuaki Kobayashi, who was appointed to oversee the administration of the plan, announced it would now be published on December 15, the latest of a number of pushbacks of the date for publication.

Kobayashi has been reportedly working on the rehabilitation for over a year, but “there are matters that require closer examination with regard to the rehabilitation plan, [so] it has become necessary to extend the submission deadline.”

The deadline extension was approved by the Tokyo District Court earlier this week, and gives those affected by the collapse of the exchange a new deadline for information on the next steps.

Once the world’s leading crypto exchange, Mt. Gox collapsed in 2014 following a catastrophic hack which saw the company lose 850,000 BTC. At the time, this was valued at around $473 million, equivalent now to around $9.7 billion.

In the weeks following the hack, Mt. Gox found 200,000 lost BTC tokens held in an old unused wallet, equivalent to around $2.3 billion today. These were discovered after bankruptcy had been filed. Its former CEO, Mark Karpeles, has been cleared of wrongdoing in connection with the collapse of Mt. Gox, despite coming in for extensive criticism for what some consider to be a failure to prevent the fatal attack. However, Karpeles still faces lawsuits in the U.S. over his role in the collapse of the exchange.

Rehabilitation proceedings began back in 2018, with a court appointed trustee in place to return the money lost to obtain refunds in their original cryptocurrency holdings. This will be paid instead of a cash value based on the value of their holdings at the time, though the plan for allocating disbursements remains unclear.

With the deadline now extended further, investors still waiting to receive their money will be keeping a close eye on whether plans are brought forward in time for December 15.

See also: CoinGeek Live panel on Digital Currency & Global Compliance: Tools & Tops for Exchanges, Wallets & Other Service Providers.

https://youtu.be/cGcz1LLXMJY?t=23071