Mt. Gox victim recovery delayed again as claims deadline extended

Mt. Gox victim recovery delayed again as claims deadline extended

The trustee responsible for administering payments to victims of cryptocurrency exchange Mt. Gox has decided to extend the submission deadline for new claims, in the latest delay to repaying those affected by its collapse.

The announcement comes a day before the expiry of the previous deadline for claims, with a district court in Tokyo agreeing to extend the deadline to March 31, 2020.

Trustee Nobuaki Kobayashi ordered the delay to allow more time for victims to lodge claims against the exchange, over funds lost in its collapse back in 2014. At the time, Mt. Gox was the world’s largest cryptocurrency exchange, running over 70% of global Bitcoin transactions.

A large amount of rehabilitation claims that the Rehabilitation Trustee fully or partially disapproved remains undetermined for being subject to claim assessment procedures and appeals against a decision on a petition for claim assessment.

According to the announcement, “In light of the foregoing, the Rehabilitation Trustee filed a motion to seek an extension of the submission deadline of a rehabilitation plan at the Tokyo District Court, and, on October 25, 2019, the Tokyo District Court issued an order to extend the deadline for a rehabilitation plan to March 31, 2020.”

The firm was forced to file for liquidation in April 2014 after suffering the impact of a hack affecting 750,000 BTC. While 200,000 BTC has since been recovered from storage, the balance remains outstanding.

As a result, many of those who lost crypto in the collapse of the exchange are still awaiting repayment of their funds, over five years later.

The decision to delay the deadline for submissions still further will come as only the latest disappointment for those affected, as they continue to await repayment of the money lost in the collapse.

The trustee was appointed by the courts after it was ruled that CEO Mark Karpeles was unable to run the exchange safely or effectively.

The news means those still awaiting payment will have to sit tight until at least March before they get their money back—assuming the deadline isn’t extended further nearer the time.

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