In a significant development in the long-running Mt Gox saga, rehabilitation trustee Nobuaki Kobayashi has officially extended the deadline for repayments to creditors until October 2024.
this delay This marks a new twist in the turbulent history of defunct Bitcoin exchange Mt. Gox, which collapsed under the weight of a massive hack in 2014.
While this extension may leave many creditors anxiously waiting, some creditors have provided the necessary information as early payments could start trickling in by the end of this year. There is a glimmer of hope for some.
Originally set for October 31, 2023, the new deadline is October 31, 2024. This decision, approved by the Tokyo District Court, applies to basic repayments, advance lump sum repayments, and interim repayments.
Breaking news: Mt Gox Rehabilitation Trustee has changed the deadline for basic repayment, early lump sum repayment, and interim repayment from October 31, 2023 to October 31, 2024. https://t.co/2JcPVQ2Njr pic.twitter.com/HnqQ8Zdvpe
— Wu Blockchain (@WuBlockchain) September 21, 2023
Mr. Kobayashi cited the complicated process of gathering information from rehabilitation creditors and coordinating with financial institutions and virtual currency exchanges as the main reason for the extension. This extension allows more time for the complex rehabilitation process to unfold.
While this delay may disappoint many creditors who were hoping to recover their assets, there are signs of hope. Those who provided the necessary information will receive repayments by the end of this year. However, it is important to note that the specific timing for individual creditors remains uncertain and may change based on changing circumstances.
Security crisis and loss of Bitcoin
Mt. Gox, once a giant in the crypto world, is a Tokyo-based exchange that controlled more than 70% of all Bitcoin transactions at its peak. Jed McCaleb founded it as an online trading platform for Magic: The Gathering cards before evolving it into a cryptocurrency exchange.
“Mountain” Gox” was born from “Magic: The Gathering Online Exchange.” Mark Karpeles took over as CEO in 2011 and led the exchange to unparalleled success.
However, the huge success of Mt.Gox made it a prime target for hackers. In 2011, a hacker exploited stolen credentials to transfer Bitcoins and thousands of Bitcoins were lost due to problems with the network’s protocols.
Additionally, the exchange’s dominance has allowed it to have a significant impact on Bitcoin market activity, such as suspending trading in 2013 to cool down an overheated market.
The darkest moment for the exchange came in February 2014, when it suspended withdrawals due to suspected fraud on its digital wallet.
Shockingly, it was revealed that Mt. Gox “lost” between 650,000 and 850,000 Bitcoins. The exact cause of this disaster was transaction malleability, which is a controversial topic within the Bitcoin community.
May 11, 2014: In early February, leading cryptocurrency exchange MtGox announced it had suspended withdrawals and “lost” approximately 650,000 BTC. This event caused losses to many BTC holders and led to many claims that Bitcoin and cryptocurrencies will disappear. pic.twitter.com/ubpf9f0ka3
— Stacker Satoshi (@StackerSatoshi) November 14, 2022
Legal battle: U.S. Department of Justice indictment
The Mt. Gox saga took another dramatic turn in June, when the U.S. Department of Justice released a statement. Two Russians indictedAlexei Vilyuchenko and Alexander Werner, criminal activities related to the hacking of the collapsed exchange.
These charges center on a conspiracy to steal approximately 647,000 bitcoins from Mt. Gox between 2011 and 2014, representing the bulk of the missing funds. This legal action sheds new light on the international scope of the Mt. Gox case.
The Justice Department’s indictment also ties Vilyuchenko to the notorious cryptocurrency exchange BTC-e, which was shut down by the FBI in 2017 on suspicion of laundering money for international criminals. Vilyuchenko is said to have been armed with ill-gotten gains from Mt. Gox and helped set up the organization. BTC-efacilitating money laundering for cyber criminals around the world.
BTC-e operated in the United States from 2011 to 2017 and processed approximately $9 billion in Bitcoin transactions. Its alleged activities allow criminals to trade Bitcoin anonymously, raising concerns about illicit financial activity in the crypto world.