The Case Continues: Mt Gox Trustee Seeks To Extend Civil Rehabilitation Claims Deadline
Sometimes, it looks like the Mt Gox story won’t ever end. Nobuaki Kobayashi, a trustee of Mt Gox, a collapsed Bitcoin exchange, is currently asking for an extension of the deadline in the process of filing for civil rehabilitation claims. He wants the time to be extended to December.
He announced yesterday, November 22, that the company will make efforts to request the court to accept proofs of rehabilitation claims up until December 26, 2018. The earlier deadline is already finished, as it was October 22.
As the creditors of the company are located all over the world, though, which means that it would be a better idea to give them more time to collect all the proof that is needed to prove their claims and to deliver the money to them afterward.
Most people are using an online filing system for the claims. The system was still online at the time of this report and the creditors who could not manually fill and send the forms to the offices could do it by the site, which will be online until December 26.
The trustee explained to the media that they are doing their part, asking for the extension and keeping the channels open. However, only the court will have the power to decide whether the claims filed after the original deadline will be valid or not.
The Story Of Mt Gox
Mt Gox was, once upon a time, the largest crypto exchange in the world. This exchange, which was based in Japan, was famous for its large volume and for handling over 70% of all the Bitcoin transactions in the world. This is how famous it was.
At the beginning of 2014, nobody could believe that the exchange would basically be bankrupted at the end of February. It was the biggest Bitcoin business in the entire world. What happened? They were hacked. After a massive hack, Mt Gox lost about 740,000 Bitcoin (BTC). This was, at the time, 6% of all the Bitcoin that existed in the world.
At the moment, the Bitcoin was valued at about half a million dollars. If we used today’s prices, though, it would certainly be worth a lot more than this. Even with the bear market and its prices, it would have been at least $30 billion USD.
While around 200,000 BTC was retrieved, most of the money was simply never returned to the exchange, which went bankrupt and had no way to give the money back to the clients. This created one of the most dreadful and long cases of problems involving Bitcoin as there were simply too many investors and no way to pay them back. A lot of people left the Bitcoin world at the time.
The hack happened on February 7, 2014, and the company stopped all withdrawals afterward and went offline soon. This means that no one was able to get their money back. The company was not slightly transparent at the time and it took weeks for the hack to be uncovered.
More critically, there are stories that the staff was being robbed without even knowing because their management was bad and the staff was not aware that their cold storage units had been compromised by a hacker. Some people were arrested later, but it did not matter much.
While many people claim that the exchange already had problems before, the fact was that Mt Gox was finished and that now, four years after the hack, people still do not have their money.
The new trustees of the company are, fortunately, keen on paying everybody for their losses, however, it is certain that Mt Gox will simply become a name that the crypto industry will want to forget forever as this was the largest hack in the history of cryptos and it will probably continue to be for a long time.
Mt Gox may remain as the star of a cautionary tale about Bitcoin. If you have a centralized exchange that is not well managed, you may risk everything.