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The Mt Gox trustee delays rehabilitation plan by six months, why?

Nobuaki Kobayashi, Mt Gox trustee, has pushed the rehabilitation deadline by six months. The deadline was fixed to tomorrow April 26. The extension was filed by Kobayashi at the Tokyo District Court which honored the request to delay the plan.

The court is overseeing the case and agreed to extend the deadline after the Mt Gox trustee argued that some claims were rejected. That’s why he needs to re-evaluate and draw an updated rehabilitation plan to reflect the rejected claims. The trustee told the court that an updated plan would be ready towards the end of October this year.

According to an announcement posted on Mt Gox’s website:

A large amount of rehabilitation claims that the Rehabilitations Trustee fully or partially disapproved remains understood for being subject to claim assessment procedures. Accordingly, it is not possible at this point to make appropriate provisions in a rehabilitation plan on modifications of the rights of the rehabilitation claims, repayment methods, and appropriate measures for the undetermined rehabilitation claims.

The Mt Gox trustee continued to note that it will take a considerable amount of time for the court to sift through the rehabilitation claims which will after that influence the time a rehabilitation plan will be submitted.

Mt Gox was hacked in 2014 losing 850,000 Bitcoins. The approximately 24,000 creditors that were affected were to be repaid in cash until Mt Gox entered civil rehabilitation in mid-2018. This opened the possibility of the creditors being paid in Bitcoin (BTC). Before the civil rehabilitation phase, the Mt Gox trustee had already sold recovered Bitcoin (BTC) and Bitcoin Cash (BCH) worth roughly 230 million U.S dollars. Last month, the Mt Gox trustee indicated that rehabilitation claims have already been processed and creditors will be noticed. However, the mode and time of payment had not been set.

Do you think the creditors will be repaid before the year ends?

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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