Mt.Gox Rehabilitation's Plan Deadline Day Extended

Earlier too, Kobayashi was given an extension which changed the deadline date to October from April 19. The rehabilitation plan submission could lead to the recovery of funds for former Mt.Gox cryptocurrency and fiat currency holders.

However, the wording of the announcement is vague, citing "matters that require closer examination with regard to the rehabilitation plan" as the reason for the delay.

What Happened at Mt.Gox?

Mt.Gox hack in 2011 and a complete collapse hit nearly 24,000 creditors and cryptocurrency holders hard. A massive 850,000 BTC loss was experienced, which in current value would be $5.5 billion.

A Japanese court granted the petition to allow the exchange to begin civil rehabilitation in June 2018. On March 25, 2020, Koyabashi finally formed a draft and presented it. Under the proposed draft, users of Mt. Gox who held BTC, bitcoin cash (BCH), fiat currency or any cryptocurrency which they owned on the platform would be refunded to them and have their claims honoured. The creditors were given second priority in fund receiving, and the funds will be allocated firstly towards the rehabilitation proceedings.

Tokyo's district court decision was put forward on the same day when a soft lockdown is getting implemented in the capital city by Mayor Yuriko Koike, in response to the coronavirus. The speculations are riddle that soon Japan would adopt more resolute and strict measures to counter the covid -19, but for now, no official decisions have been brought to our knowledge.

The corona crisis has plundered countries all around the world, but luckily Japan has no been hit that hard yet like its counterparts China, and the United States.

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