The collapsed Japanese cryptocurrency exchange Mt. Gox has decided to extend the deadline for repayments to its creditors until October 31, 2025.
According to the established rehabilitation plan, which was approved by the courts, the deadline for Mt. Gox to return all the bitcoins in its possession to creditors was October 31 of this year. However, due to a series of complications that have arisen during the repayment process, which began in July, the trustee of the failed exchange, Nobuaki Kobayashi, recently announced the extension of this deadline for a period of one year, until October 2025.
This news has generated a mix of relief and concern in the cryptocurrency community.
To the date, Mt. Gox still holds approximately 44.905 BTC in its wallet, equivalent to more than $2.700 billion dollars, which have not been able to be delivered to creditors who have not completed the necessary requirements to receive their funds back.
By extending the repayment period, the company seeks to facilitate the resolution of these problems and ensure that all its creditors receive their funds without further inconvenience, assured the trustee.
The bankruptcy of Mt. Gox
Mt. Gox was once the largest cryptocurrency exchange in the world, handling over 70% of all Bitcoin transactions at its peak. However, in February 2014, the platform went bankrupt following a massive hack that resulted in the loss of approximately 800.000 BTC. This event marked the end of the platform and, also, a turning point in the history of cryptocurrencies.
Since its bankruptcy, Mt. Gox has faced numerous legal and financial challenges in its efforts to repay its creditors. The repayment process has been long and complicated and has been plagued by delays, leading to the need to set new deadlines. The recent extension of the repayment deadline, which was originally set for October 31, 2024, was decided in an attempt to accommodate those creditors who have not yet completed the procedures required to receive their funds.
Extension of the repayment deadline to 2025
Trustee Nobuaki Kobayashi has explained that the decision to extend the deadline for Mt. Gox repayments was necessary to ensure that all creditors have the opportunity to receive their funds. Many of them have faced difficulties due to issues in the repayment process, which began in July of this year. The trustee stressed the importance of making these payments in a way that accommodates as many creditors as possible.
The extension of the deadline will therefore not only provide more time for creditors to complete the necessary procedures, but will also allow Mt. Gox to address legal and administrative issues that have arisen during the process. This includes resolving disputes regarding the eligibility of certain creditors and verifying the claims submitted. According to the trustee, transparency in this process is essential, as creditors expect their funds to be returned in a fair and equitable manner.
The influence of Mt. Gox on the price of Bitcoin
The news of Mt. Gox extending its deadline to repay all of its creditors has had a noticeable impact on the Bitcoin market. Some analysts believe that this move may help stabilize the price of the cryptocurrency, as it prevents a massive sell-off that could have occurred if repayments had been made in the short term. Before the announcement, there were concerns about a potential selling pressure for Bitcoin, considering the more than $2.700 billion that the exchange still holds.
According to data from CoinMarketCap, the price of Bitcoin has reached a peak of $61.150 at the time of writing. While the leading cryptocurrency is still trading down, with a correction of 0,07%, its price has been recovering in the last few hours, going from around $58.900 on October 10 to $61.150 today.
Source: CoinMarketCap
Legal and administrative challenges in recovering funds
The road to recovering funds for Mt. Gox creditors has not been without legal challenges. Since bankruptcy, the firm has faced various lawsuits and complications that have delayed the repayment process. Many creditors have expressed frustration at the lack of communication and clarity in the process, leading to a climate of uncertainty.
Now, Mt. Gox’s recent extension of its repayment deadline to 2025 marks a new chapter in the exchange’s saga. The trustee says it is working to resolve all the issues that have arisen during the current process, while creditors remain hopeful that they will eventually be able to receive their funds.
It has been a decade since the Mt. Gox rehabilitation process began, and its history has become a harsh lesson on the importance of security and regulation in the world of cryptocurrencies.
