Mt. Gox Trustee Releases Update on Repayment Procedure, Dismiss Rumors of Bitcoin Dump

On Wednesday, August 31, Nobuaki Kobayashi, trustee at Mt. Gox released an updated information regarding the rehabilitation plan for creditors.

As per the file released, the restriction reference period starts on September 15. Mt. Gox said that during this phase "the assignment, transfer or succession, provision as collateral, or disposition by other means of rehabilitation claims are prohibited”.

Kobayashi added that creditors can submit their claims of the funds lost by September 15. Mt. Gox collapsed back in 2014 losing millions of dollars in investors’ money. Speaking on it further Kobayashi added: "During the Assignment, etc. Restriction Reference Period, the Rehabilitation Trustee will cease accepting applications for claim transfer procedures through the Rehabilitation Claim Filing System”.

The document, however, doesn’t mention the deadline of the restriction period but confirms that it will be followed by the first entire repayment to creditors, as per their Rehabilitation Plan.

Furthermore, the updated file adds that if the notice of transfer is submitted during the restriction period, the trustee would be unable to determine whom to repay. The file adds: "This may result in rehabilitation creditors being unable to receive their preferred Repayments, the Repayment date being 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.”

Earlier this week, rumors stormed the crypto market that Mt. Gox will dump 137,000 BTC and put a selling pressure on the crypto market. However, Mt. Gox creditor Eric Wall was the first to dismiss the rumor stating that creditors are still unable to register on where to send the funds.

As per Wall, the exchange has yet to complete the infrastructure required to commence the repayment. The Mt. Gox creditor also said that people are still unable to register where to send the BTC and BCH payments.

Also, as per Eric Wall, the payments should occur in multiple instalments. Thus, he completely dismisses the rumors that thousands of Bitcoins shall be up for sale at once. Thus, for now it seems that Mt. Gox might delay the distribution of the payments.