MT Gox, once the biggest bitcoin exchange now waiting to distribute 141,000 bitcoin and BCH, has suspended transfers of claims in a sign the distribution might be in its final stages.
“The Rehabilitation Trustee will cease accepting applications for claim transfer procedures through the Rehabilitation Claim Filing System,” the Trustee said in a letter to creditors.
Making this the clearest sign that the distribution of $1.7 billion in cash, 141,000 in bitcoin and 142,000 in BCH to some 10,000 creditors across the globe is now more imminent than it has ever been in the eight years since MT Gox went bankrupt in February 2014 with the Trustee stating:
“For safe and secure repayment to rehabilitation creditors, the Assignment, etc. Restriction Reference Period will be set in accordance with the Rehabilitation Plan after obtaining permission from the Tokyo District Court.”
The cash will be distributed through the banking system to bank accounts. The Trustee has not yet asked creditors to provide their bank details.
The crypto is expected to be transferred through exchanges, potentially Kraken or a coalition of exchanges.
Numerous creditors have linked their claim to Kraken years ago, so a transfer through that system should be easy and pretty much instant.
Each creditor has had the option of choosing whether to be paid in cash or in crypto their portion of bitcoin or BCH, which amounts to about 80% of general claims while the $1.7 billion in cash – out of bitcoin sold during the bear in 2018 – amounts to about 20%.
The Trustee has not yet set what they call the Base Repayment Deadline, which “will be set in due course.” But the start date for this cancellation of claim transfers is on September 15th. Redistribution therefore may start on or shortly after that date.
The Trustee notes that for those who opted to receive their crypto portion in cash, there may be a delay, stating:
“If repayments will be made with cash obtained from the sale of cryptocurrency by the Rehabilitation Trustee, a repayment date different from the repayment dates of other allowed rehabilitation claims may be set with the permission of the Court since the sale of the cryptocurrency may take some time.”
It’s unclear what portion have chosen to have their crypto paid in cash, but it is expected to be a very low number because there is no reason why you’d want it in cash rather than in bitcoin when you can sell it yourself or hold, etc.
However, all these OG pre-2014 bitcoiners, which includes some current and former Bitcoin Core developers, will receive close to $2 billion in cash in addition to their crypto, with it unclear what portion will turn that fiat into bitcoin.
So it looks like it is finally happening, eight and a half years on after MT Gox went bankrupt, with all creditors very much in profit after nearly a decade of holding.