Mt.Gox Trustee Extends The Registration & Repayment Deadlines Again
It seems like the story of Mt.Gox bitcoins will never come to end. Mt.Gox trustee announced today that deadline for selection of repayment method, registration of payee information, and repayment deadline are changing. Read the official notification here. Of course, distribution of funds to many creditors is not an easy task. It requires thorough process that makes sure all legal guidelines are followed and best efforts are made that all creditors received their portion of funds. But it has been a very long time since the hack. Last year it seemed that Mt.Gox story was going to have good ending and creditors finally receiving their funds. We will be hearing more of Mt.Gox for rest of 2023.
This deadline was delayed four months ago already. You can read more about it in my previous post from four months ago - Mt. Gox Trustee Delays Repayments And Clarifies Process. Maybe this postponement is a good thing. Perhaps, this will make sure all creditors have filed their claims properly and no creditor will be left behind.
I am not a creditor. I never used Mt.Gox. However, this story does involve all bitcoin participants. These are significant amounts of bitcoins Mt.Gox trustee will be distributing. When the trustee announced the repayment procedures about six months ago, they had 141,686 bitcoins to distribute and/or sell. Since they have not started the repayments yet, they probably still have the same amount of bitcoins in their possession. This is a lot of bitcoins. Short term concern has been, if most of these bitcoins make their way to the market, it would bring bitcoins price more and extend the bear market.
In my opinion, Mt.Gox trustees actions, announcements and interviews have influenced bitcoin's price and overall crypto market trend in the past. I do still believe that Mt.Gox trustee was the among the main reasons 2018 crypto bear market happened. I also think their announcement of repayments in November 2021 have contributed to the current bear market. Interestingly, most of these market influences were only based speculation or fear of what Mt.Gox would do or fear of it, not the actual actions. I know, this is oversimplification of markets. There are many more factors that contribute to market conditions, trends, and price action. However, it would still be a good idea to remove this factor out of the equation already. After all Mt.Gox funds are distributed to creditors, at the very least, we don't have to worry about large amount of bitcoins entering the market.
That said, if this is problem for bitcoin's price, it would only be a short term issue. In a long term, Mt.Gox funds have no influence in the success of bitcoin as a revolutionary technology. The network will continue to grow, price will continue to appreciate, more and more people will embrace decentralization as a new model for finance, economy, and web.
The new deadline for selecting repayment methods and registration of payee information is now March 10, 2023. Previous deadline was January 10, 2023. The reason for extending this deadline seems to be there are some creditors who have not completed selection and registration yet. As previously was announced, creditors have few options to choose from:
- Early lump-sum repayment.
- Repayment for a portion of cryptocurrency rehabilitation claims in cryptocurrency repayment by bank remittance.
- Repayment by bank remittance.
- Repayment by remittance through a fund transfer service provider
The new deadline for repayments is now September 30, 2023. Previous deadline was July 31, 2023. On one hand, it might be good to know we won't be seeing large amounts of bitcoins sold at once, but at the same time knowing that this may potentially happen towards the end of this year may influence crypto investors and traders. But also, there is a good possibility that creditors are long term investors in bitcoin and won't be interested in selling their coins. Considering that portions of the funds can be repaid in bitcoin, Mt.Gox won't have as many bitcoin to sell as they currently hold.
Mt.Gox story continues. At this point, I am not sure it will end anytime soon. Perhaps we will still be talking about Mt.Gox bitcoins in 2024 and beyond. At some point it will be come irrelevant, and won't have much of an influence in bitcoin price action anyway. As the network grows, demand for bitcoin continues to grow as well. There will be plenty who are interested in obtaining more bitcoins if Mt.Gox trustee or creditors decide to sell them.
This makes me wonder, how long will it take for FTX funds to be sorted out and ready to be distributed to FTX users, investors, creditors, etc.
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Wow funds released next bullrun, a future source of fud. Let's become a Dogmoney whale!
It won’t effect price at all. Will be built in and well broadcast aka priced in already. I agree it’s just pointless FUD.
That is too much bitcoin. It’s surly going to have a short term effect, because most creditors will opt to sell off there bitcoins putting some selling off pressure on bitcoin that is most likely to translate into a downward movement of the chief crypto currency. Hope they are not timing the market like traders to rip the most from the market. Either way the creditors need there money it has been long over due
I disagree totally. It will hardly be a spec on price. I’d bet it gets priced in. Maybe a couple dips for extra ally brief periods but it will be well known prior snd priced in. The volume isn’t what it was years ago snd will handle this just fine.
Yeah, I agree. When Ronaldo started minting NFT with his 500 million fans...it didn't even move the market.
I've not heard of this? I heard of the MIT situation im South Africa and that was huge for us over here..
But 140k + bitcoins locked up and then suddenly released, I'm sure that could turn the tummys of the markets😅
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It probably won't. The market it big enough to handle it.
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The Mtgox issue seems not to be dying any time soon. The amount of BTC to be distributed is not small and it will definitely have a lite impact on the market. Lets wait to see what comes afterwards. In fact, I am seeing Interesting times in the crypto space ahead
What kinda impact? I would bet it does not have any impact as it will be priced in. Those selling obviously want best value so it won’t just be sold in a single clip. I don’t see this moving price in a big way at all. News will be well broadcast prior.
I honestly think FTX users will get less compared to Mt Gox. In one of the interviews or digging that people have done, I don't think they had any BTC at all. Also, with the US and Bahamian government involved, I have a feeling a ton of those funds will be eaten in the legal process.
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FTX creditors will probably get something in USD. If this process lasts long enough, this value might increase significantly. But if they didn't have top coins, that may not happen. Also, if they end up selling all crypto assets as part of the bankruptcy steps, then the amounts for distribution probably would be low and might even lose value over time due to inflation. So many unknowns.
I think they will get less as the process goes longer. After all, they will be taking the legal fees for the entire bankruptcy from those crypto assets. There are just way too many variables when trying to predict what will happen.
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It will be in fiat currency. FTX I mean. I doubt they get much value at all :(
#YouDontHoldIt #YouDontOwnIt
One ponders if they are pushing extension because not a lot of people are claiming their btc? Like what if all those btc where still unclaimed and government don’t know what to do with?
I would think by this time they know all the creditors. Since there are multiple options of repayment, all creditors need to make their choices using their registration platform.
That will take forever 😅
It does seem so.
Indeed, I also wonder whether they will be paid in cryptos or in USD equavelent to thr value before the bankruptcy.
Good question. We will probably won't know anytime soon, unless we hear them selling these assets.
Some time ago this mt. Gox exchange said that it will refund the btc of all those people And it's an easy way to restore credibility.
Wonder how much left in ftx for the creditors after deducting liquidator fee and liquidation cost🤔
It's not an oversimplification of the markets. That is the way it works. Just like that.
That's why we, as traders buy the rumors, sell the news.
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It's because their claim system is really hard to navigate. I just got my end completed last month, after working on this claim process for what seems to be a year now, and they keep sending me emails telling me to finish, which only confuses me because I am done. It took me until last month because I actually quit trying to claim at one point because the whole system lead me to dead ends many times. The claim process was literally broken. Right now I have it all linked up to kraken and i'm having them send me cash and btc and bch there. It is still unknown how much of each, I don't want the cash, but once again they bundled that option together with the kraken claim process. Supposedly I will get my funds in another 60 days, they said 90 days before, but I am not sure what this extension thing has to do with me. Maybe that means I won't get the btc at the time they said because they are pushing it back. I don't really expect anything at this point, the claim system was so "hokey" that I think it discouraged a lot of claimants and indeed they are sitting on a pile of unclaimed btc at this point.
Thank you for sharing your experience. I would think with all the money they have, they would set up a proper system. I hope your claim goes through without any issues. It would be a complete disappointment if they end up with significant amount of unclaimed btc. Let me know if you end up getting funds back or not. It would be interesting to know this process ends, if ever.
I had funds on MtGox. I have no clue and hit dead end when I tried years back. I had lost my account info and yea didn’t get much help. I don’t think it was more then $50 worth so would be $1500 or so today I believe. I replaced the bitcoin so not stressed but I found no help when I couldn’t produce password or my Gox info.
😣 the whole thing really is a mess! i hope people do get their money back.
Did you know that Mt. Gox was originally developed and designed to be a secure place to trade Magic: The Gathering?
Yes. Hence, the name. MTG.
with patience...
My opinion is that the whole thing should be in Bitcoin. That's what they deposited, after all...
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This is the first time I am reading about Mt.Gox funds, It is worth figuring out how to handle things like this as the crypto space ages.
About the whole FTX payment, they recently started taking stories from those affected. I gave an update on it here