The defunct crypto exchange Mt. Gox has officially announced another delay in its creditor repayment schedule, extending the deadline to October 31, 2026. This marks the third time the timeline has been pushed back from its original date of October 31, 2023.
The rehabilitation trustee made the announcement on Monday, just a few days ahead of the previous deadline. With court approval obtained, the extension aims to give creditors ample time to complete necessary procedures or resolve outstanding issues hindering their repayment.
The trustee emphasized that this extension is vital to ensure repayments are made to creditors “to the extent reasonably practicable.”
The repayment process has seen positive developments, with the trustee successfully distributing payments to about 19,500 creditors who navigated the eligibility criteria without complications. These repayments have primarily been made in Bitcoin and Bitcoin Cash.
The Mt. Gox Collapse
Founded in 2010 and based in Tokyo, Mt. Gox quickly rose to prominence as one of the leading Bitcoin exchanges. However, in 2014, the platform became embroiled in controversy after suffering a catastrophic security breach, which led to the loss of 850,000 BTC. This incident forced the exchange to suspend withdrawals and subsequently file for bankruptcy protection.
Current State of Repayments
While some creditors have received their shares via platforms like Kraken and Bitstamp since mid-2024, a significant number are still waiting for their funds. The predominant reasons for non-receipt include incomplete eligibility procedures and various issues that some creditors faced during the repayment process.
As it stands, Mt. Gox possesses a substantial amount of assets. Recent data from Arkham Intelligence shows that the exchange currently holds 34,689 BTC, valued at approximately $4 billion. Aiming to assist creditors, the trustee is set to utilize a collection of recovered assets, which includes 142,000 BTC and 143,000 Bitcoin Cash.
In addition to cryptocurrency holdings, the trustee also has liquid assets amounting to 69 billion Japanese yen, roughly translating to about $510 million. The prices of Bitcoin have fluctuated, with the latest announcement indicating a trade value of $111,540 per coin.
As this situation continues to develop, creditors are reminded to ensure they complete all necessary procedures to avoid delays in their repayments. The saga of Mt. Gox serves as a poignant reminder of the volatility and complexities within the cryptocurrency landscape.
