Mt. Gox Delays Creditor Repayment Deadline to 2025 Amid Ongoing Distribution Issues
The defunct crypto exchange Mt. Gox has extended the deadline for repaying its creditors by one year, now set for October 31, 2025.
The announcement revealed that many rehabilitation creditors have yet to receive their repayments due to incomplete procedures.
Once a leading player in the crypto space, Mt. Gox accounted for approximately 70% of global Bitcoin transactions at its peak.
However, the platform faced multiple security breaches, leading to a suspension of withdrawals and its eventual downfall in 2014, which left around 127,000 users without access to their funds.
In July, the trustee overseeing Mt. Gox’s assets began distributing roughly $9.4 billion to creditors, but as of now, about $2.8 billion in assets remain owed.
READ MORE: US Targets Crypto Market Manipulation in Major Fraud Crackdown
Nobuaki Kobayashi, the trustee, noted that many creditors haven’t received their repayments due to various procedural issues, including errors like double deposits. The exchange later requested that users return any overpaid amounts.
Concerns have been raised regarding the repayment process’s effect on Bitcoin prices. By late July, over 41.5% of the total 141,686 BTC earmarked for creditors had been redistributed, with analytics firm Glassnode reporting that creditors were holding around $4 billion in funds. As of now, Bitcoin is valued at $62,926, reflecting a 5.3% increase over the past day.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
