Mt. Gox Releases Update on Creditor Rehabilitation Plan

Failed cryptocurrency exchange Mt. Gox has provided an update on its repayment procedures under its creditor rehabilitation plan.

• The exchange states that the “Rehabilitation Trustee” –  Nobuaki Kobayashi – is preparing to make his repayments in line with the exchange’s approved rehabilitation plan.
• Kobayashi published an accompanying report related to both repayment procedures and his performance concerning his duties as a trustee.
• The document details various choices the creditors can make when receiving their payments. They may receive early lump-sum payment and may receive a portion of their claims in the form of either Bitcoin or Bitcoin Cash.
• Furthermore, Kobayashi has set a Restriction Reference Period from the end of August until “all or part of the repayments made as initial repayments are completed.”
• This means that a swell of Bitcoin could start to hit the market as Mt. Gox starts repaying its creditors next month. The trustee will not accept more applications for claims transfers at this time until the initial round of repayments is completed.
• Mt. Gox issued an email on the matter earlier today, spurring some anticipation from the crypto community. Some believe the repayment could contribute to more downward pressure on Bitcoin amid an already bloody bear market.
• However, when the rehabilitation deal was finalized in November, crypto proponents doubted that the repayments would severely impact Bitcoin’s price.
• CryptoQuant CEO Ki Young Ju shared a tool on Thursday allowing people to set an alert for when any Bitcoin begins to leave Mt. Gox’s public blockchain wallet.
• In March, the exchange’s former CEO issued an NFT series that was free for customers. The tokens are supposed to provide holders access to UNGOX services, a project providing ratings and analysis of exchanges and their security levels.