The infamous Mt Gox crypto exchange was the largest virtual currency operator in the world prior to its collapse in 2014. Since then, creditors with various claims of lost funds have been across hundreds of millions of dollars after Mt Gox unexpectedly shut down. In order to compensate creditors and make necessary payments, the Tokyo District Court opened a window for such repayments.

The window allows for base, intermediate and early lump sum payments that must be made by October 31st, 2021. All these payments will be made in a mix of different currencies - bitcoin and bitcoin cash in terms of cryptocurrencies, and Japanese yen (¥200,000 worth) when it comes to fiat money. Significantly, Mt Gox holds a total of 142,000 bitcoins, 143,000 bitcoin cash and 69 billion Japanese yen as per the official report.

The Mt Gox Trustee, responsible for the payment of these funds, is required to coordinate with different financial institutions in order to distribute the payments among the creditors. However, the process is expected to take some time since a lot of preparatory work needs to be done before the payments actually commence.

It should also be noted that the Tokyo District Court reserves the right to extend the repayment deadline if needed. In addition to that, Mt Gox stated that the repayment may differ depending upon the number of applications it receives from the creditors.

Mt Gox is a tragic reminder of how the crypto industry operates amid a largely unregulated market. Despite that, the company's creditors can take some comfort relishing the fact that their claims will be properly considered and paid out.



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