“Mt. Gox trustee Nobuaki Kobayashi released updated information on Wednesday regarding the rehabilitation plan for creditors of the long-defunct crypto exchange. According to the file, the restriction reference period starts on September 15. During the phase, 'the assignment, transfer or succession, provision as collateral, or disposition by other means of rehabilitation claims are prohibited” [Pereira, A.P. Mt. Gox trustee releases repayment procedures update. (Accessed September 1, 2022)]

*[The full set of rules for distribution of the Mt. Gox bankruptcy may be found in the Notice of Confirmation Order of Rehabilitation Plan becoming Final and Binding which may be accessed by clicking here].

However, of particular importance is that:

A form must be filled out by affected exchange users who are requesting reimbursement and where they must make a number of significant selections and registrations. As a result, it will be necessary to choose and complete:

• Whether or not the claimant desires early lump-sum payback, which often entails getting a specific amount in a single payment.
• Registration of the desired method of receiving cash repayment and registration of recipient information.
• Whether or not to register user information from cryptocurrency exchanges or custodians, as well as whether to obtain repayment for a percentage of claims concerning cryptocurrency in Bitcoin or Bitcoin Cash.

[Coincu. Mt. Gox Repayment Process Has Important News Updates. (Accessed September 1, 2022)].

It should be noted that the requirement for the filing of this information was made known to the creditors by way of a document entitled Information on Repayment Procedures dated July 6, 2022.

[If you wish you may review this Information by clicking here].

“The Rehabilitation Trustee is presently prepared to carry out repayments in accordance with the plan established by the Tokyo District Court on November 16, 2021, the document claims” [Id]. “The Restriction Reference Period is one of the final steps in repaying creditors, according to the document released Wednesday” [Pereira, supra].

“Kobayashi confirmed that creditors have until September 15 to submit claims regarding funds lost when the early crypto exchange collapsed in 2014: 'During the Assignment, etc. Restriction Reference Period, the Rehabilitation Trustee will cease accepting applications for claim transfer procedures through the Rehabilitation Claim Filing System” [Id]. Accordingly, “[…] the assignment period will start at the end of August and extend until all or a portion of the repayments have been made. New claims will not be taken into account once the assignment period begins, it is also noted. It should be observed that the agreement makes no mention of the precise dates, numbers, or sums of money that are intended to be repaid” [Coincu, supra].

It is further important to note that the July 6, 2022 Information provided by the Rehabilitation Trustee contained the following cautionary instruction:

If rehabilitation claims are transferred during the Assignment, etc. Restriction Reference Period, the use of the System by both transferors and transferees will be suspended, and this may result in you being unable to carry out the Choice and Registration, the Repayment date may be delayed significantly compared to other rehabilitation creditors, or at worst, the Repayment amount may be deposited with the Tokyo Legal Affairs Bureau in accordance with laws and regulations. Thus, to avoid unexpected disadvantages, we ask that you refrain from transferring rehabilitation claims during the Assignment, etc. Restriction Reference Period. In addition, please note that, in relation to rehabilitation claims for which applications for claims transfer procedures have been made to date, or for which applications have been made before the commencement of the Assignment, etc. Restriction Reference Period, there is no guarantee that they will be approved by the Rehabilitation Trustee before the deadline for carrying out the Choice and Registration and thus they will be subject to similar disadvantages.

[Rehabilitation Trustee Nobuaki. Information on Repayment Procedures. (Accessed September 1, 2022)].

“Mt. Gox was one of the earliest cryptocurrency exchanges, and at one time facilitated more than 70% of all trades made within the blockchain ecosystem. Following a major hack in 2011, the site subsequently collapsed in 2014 due to alleged insolvency; the fallout affected about 24,000 creditors and resulted in the loss of 850,000 BTC. In November 2021, the exchange’s trustee confirmed that the rehabilitation plan was in Japan’s court system. It is one of the final steps in a long process that began in 2018 with a petition to compensate creditors” [Pereira, supra].