Bitcoin Exchange Bankruptcy

Mt. Gox Bitcoin BankruptcyBankrupt Bitcoin Exchange, Mt. Gox, extends date for creditors to file

The Japanese bankruptcy trustee, Nobuaki Kobayashi, handling the Mt. Gox bankruptcy case, has recently announced a six-month extension for creditors to file claims, in an attempt to recover lost moneys during the Mt. Gox bitcoin disappearance scandal.

What else does this extension mean?

While creditors have an extra six months to file claims, there will now also be an additional six months before any formal investigation into the bankrupt exchange is completed. Nobuaki Kobayashi had set the previous filing deadline for proofs of claim on the 28th of November, 2014. Essentially, the Mt. Gox trial has now been delayed until next year, with the investigation findings to be revealed on the 9th of September, 2015.

OKPay, a payment processing firm, has paid back some of the money lost during Mt. Gox’s collapse, to Mt. Gox. The $6,014,910 total consisted of withheld deposits from its customers, that OKPay held onto in the period immediately preceding Mt. Gox’s collapse. An OKPay representative told the public that it was instructed to pay Mt. Gox the $6,014,910 it was holding, through a court order.

OKPay had intended to return the money to its customers, but had no choice but to give it up when they were given the court order.

Many are afraid that with Mt. Gox in control of their money again, it will be lost, or incorrectly distributed to outside parties.

What is the actual story with Mt. Gox?

In a nutshell, Mt. Gox was a Japanese run bitcoin exchange. It dealt with daily transactions of bitcoin and held more than $400 million within its digital vaults. Earlier in 2014, Mt. Gox had reported that $460 million dollars had been stolen, by hackers, and $27.4 million had been taken out of the companies private account. More than 650,000 bitcoins had been stolen.

Now creditors and investors are attempting desperately to receive a refund of the money they had invested in Mt. Gox. No one has been held accountable, yet, so the bankruptcy trial continues on.

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