Nobuaki Kobayashi announced that the exchange has already started making partial payments based on the self-rehabilitation plan. However, some creditors will have to wait up to three months, depending on which trading platforms they filed claims against.
Kobayashi’s letter to clients states that each authorized exchange is required to add the required amount of BTC and BCH to the lender’s account balance (or transfer the required amount of these crypto assets to a wallet linked to the account) within a specified period after receiving the BTC and BCH from the trustee.
The American exchange Kraken, for example, has 90 days to process payouts. And payouts through Bitstamp can take only 60 days. Payouts from BitGo must be completed within 20 days. SBI VC Trade and Bitbank will complete payouts within 14 days.
The compensation will be available to creditors who meet certain conditions. Recipients must verify their accounts and enter into an agent agreement with the crypto exchanges through which the payments will be made. These agent agreements are listed in the online claim system on the MtGox system. The notice to depositors also states that they will not be able to receive a refund in BTC or BCH if their account is disabled or blocked.
MtGox previously transferred 47,228.7 BTC (about $2.71 billion) to its separate wallet, and then began transferring crypto assets from there, including 1,545 BTC ($85 million) to the hot wallet of the Bitbank crypto exchange.
Analysts at investment bank JPMorgan are confident that creditors will start selling off the bitcoins they received en masse. However, Alex Thorn, head of research at Galaxy Research, believes that users will keep the unlocked crypto assets.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
