Mt. Gox, one of the earliest cryptocurrency exchanges, has
postponed repayments to its creditors by another year. The defunct Bitcoin
exchange announced on Monday that the new deadline for repayments is October 31
next year. The update came just days before the previous deadline of October 31
this year.
Creditors began
receiving repayments in December 2023, about ten years after the exchange’s
collapse. The trustee confirmed that some payments were made through bank
transfers and PayPal, with further repayments scheduled to continue in 2024 due
to the large number of claims and varied payment types.
Majority Payments Completed, Some Await Funds
According to the latest announcement, most base, early
lump-sum, and intermediate repayments have been completed for creditors who
submitted the required documents, while many are still awaiting funds. The
trustee said the extension was made with court approval to ensure repayments
proceed “to the extent reasonably practicable.”
Digital
assets meet tradfi in London at the fmls25
Mt. Gox collapsed in 2014 after losing about 850,000 Bitcoin
in a security breach. Around 200,000 BTC were later recovered, while roughly
650,000 BTC remain missing. The case developed into a long rehabilitation
process under Japanese court supervision.
Repayments Could Trigger Market Selling Pressure
The exchange’s large Bitcoin holdings have drawn market
attention, as some analysts warned that creditor repayments could trigger
selling pressure. Data from Arkham Intelligence shows that Mt. Gox now holds
about 34,690 BTC, valued at nearly $4 billion—a decline of more than 75% from
the 142,000 BTC held in mid-2024.
At its peak, Mt. Gox handled over 70% of global Bitcoin
trading. Its collapse in February 2014 remains one of the defining events in
cryptocurrency history.
This article was written by Tareq Sikder at www.financemagnates.com.
Source link
