A six-month extension has been added to the bankruptcy case against Mt. Gox. This extension gives creditors a six-month extension to register claims against the firm and will push the investigation into the exchange out by six-months.
The previous deadline for filing claims was November 28th and investigation findings due the February 25th 2015. This extension allows creditors until May 29th of 2015 to file and investigation findings to be delivered on September 9th 2015.
An email was sent to all users with Mt. Gox accounts reading:
“On July 24, 2014, the Tokyo District Court 20th Civil Division issued an order to change the period for filing proofs of claims and the date for investigation of claims as follows (please refer to the attached file).
Detailed information for the filing of proofs of claims, including the form of the filing document and the process of the filing will be disclosed through the website of MTGOX Co., Ltd. at a later date. Your patience would be very much appreciated.”
Few are happy with the proceedings around the case, citing a lack of transparency. Many questions are left unanswered and details into the investigation are being omitted at best and hidden at worst. Mt. Gox has yet to account for the missing 650,000 bitcoins, leaving investors with phenomenal losses. However, Tokyo police are investigating the alleged hack. Investors have not only lost their bitcoins and the value they hold, but investment opportunities.
Many are questioning if the trustee, Nobuaki Kobayashi, has creditor's best interest in mind. Kobayashi has spent lavishly on consultants and administrative costs while maintaining minimal communication with creditors. Some question if Kobayashi has significant knowledge of the digital currency to even be on the case.
Gox Creditors Demand More
Creditors are demanding their payments be in bitcoins rather than cash, which is encouraging for the Bitcoin community. Their reasoning goes something like this. If Mt.Gox is ever made to pay, they will have to sell their bitcoins. Any sale of bitcoins on that large of a scale could depress the Bitcoin market. While creditors may have lost their faith in Mt. Gox, they have not lost their belief in the digital currency, and there is reason to believe they would reinvest in Bitcoin given the cash to do so.
While Mt. Gox has filed for bankruptcy, they are still spending money – and a lot of it. Creditors were outraged when a released court document showed Mt. Gox paid $200,000 to Tibanne, the parent company of Mt. Gox, for services rendered. Even more disconcerting was the information that Mt. Gox claims to hold only $7 million out of the $30 million it had at the beginning of their liquidation. It's unclear where the money all went, but it could mean Mt. Gox spent $23 million between February 28th and May of this year. Regarding the alleged hack of 650,000 bitcoins, Japanese and American authorities recently announced that they will be cooperating in the Mt Gox investigation of the hack.