Business

Ed Drake

Trustee wants deadline extension for Mt. Gox civil claims

The trustee of the defunct Mt. Gox exchange has asked for an extension to the deadline for civil rehabilitation claims, which could allow for claims to be filed up to December.

Nobuaki Kobayashi has disclosed efforts to convince the courts to grant an extension to the deadline for filing claims, in a move that would afford claimants more time in lodging their applications for compensation following the collapse of the exchange in 2014.

On Thursday, Kobayashi said he plans to pursue “efforts to request the court to accept proofs of rehabilitation claims received by December 26, 2018,” following on from the now-passed original deadline of October 22, 2018.

The trustee highlighted the international nature of Mt. Gox creditors, and said he would ask the courts to consider allocating additional time for claimants to file the required documentation as part of their claim.

Despite the original deadline having past, those affected are still able to file claims online, or on paper by a date not later than December 26. However, as noted by Kobayashi, it is up to the courts “whether proofs of rehabilitation claims filed after the deadline will be accepted.”

Once the largest cryptocurrency exchange in the world by volume, the collapse of Mt. Gox was the result of a hack totaling 850,000 Bitcoins, some 7% of all Bitcoin tokens—made up of both client funds and substantial Mt. Gox-owned holdings. The hack was worth around $470 million at the time, and saw a number of investors losing their funds stored on the exchange.

The civil rehabilitation process was initiated following a ruling at a court in Tokyo as recently as June of this year, some four years after investors lost their money, when judges ruled creditors could proceed with claims against the exchange.

If the courts approve the latest deadline extension, creditors will have additional time to complete the filing process, ensuring as many of those affected by the hack as possible have access to the compensation they are entitled to.

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