those who choose to get pay outs in crypto - are coins distributed only by approved exchanges or directly to user wallets as well?
this is in light of sanctions agains russian citizens cryptoexchanges raised - bitstamp blocked my account.
You can choose a wallet address from a non custodial wallet to received your crypto and not only from the exchange wallet. I think you should read the whole information on the official Mt.Gox statement rehabilitation program to issue refund. They didnt mention any specific wallet address to received the funds and that means you can use any compatible wallet to receive the crypto that you choose. The most important is the details that you will provide during your registration on there claim page.
You can read all the info and procedures on there official documents attached below.
Information on Launch of Function for Selection of Repayment Method and Registration of Payee Information: https://www.mtgox.com/img/pdf/20221006_announcement_en.pdf