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Defunct crypto exchange Mt. Gox gets court approval to extend repayment deadline by another year. However, rehabilitation creditors who have provided details to the Mt. Gox trustee may receive repayments as early as the end of 2023. Mt. Gox trustee earlier announced plans to complete repayments to creditors by October 31 this year.
Mt. Gox Delays Repayments to October 2024
According to a letter by Mt. Gox rehabilitation trustee Nobuaki Kobayashi dated September 21, the Tokyo District Court has permitted the Rehabilitation Trustee to change the deadline for repayments by another year. The deadline for Base Repayment, the Early Lump-Sum Repayment, and the Intermediate Repayment are extended to October 31, 2024.
“The Rehabilitation Trustee will not be able to complete the repayments above by the deadline of the Base Repayment, the Early Lump-Sum Repayment, and the Intermediate Repayment, all of which were set for October 31, 2023.”
However, creditors who have provided the necessary details may get repayments by the end of this year. The schedule is subject to change depending on the circumstances and the specific timing of repayments, which may delay repayments to them.
Creditors have waited nearly a decade to receive repayments, but Mt. Gox continued to delay it. The rehabilitation trustee announced earlier this year to complete repayments, but the lack of details and time taken in discussion with banks, fund transfer service providers, and designated cryptocurrency exchanges have delayed it.
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Bitcoin to Pick Upside Momentum
Mt. Gox repayment can impact Bitcoin prices as creditors may sell or swap their assets. A large amount of crypto movement typically follows a dump in prices. However, experts have asserted that the move will not impact Bitcoin prices much. The delay may bring upside momentum in Bitcoin price.
Currently, the exchange holds 142,000 BTC, 143,000 BCH, and 69 billion yen, among others. BTC price currently trades at $27025, moving gradually towards the $30k psychological level.
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Will Creditors Ever Get Money?
In 2014, Mt. Gox suffered a major hacking incident resulting in the theft of 850,000 BTCs, which is now valued at almost $23 billion. The exchange was the largest exchange and handled over 70% of all Bitcoin (BTC) transactions.
However, creditors have since waited to get their money from the exchange. The rehabilitation trustee and the court took many years to start paying back creditors and even failed to complete repayments this year despite an announcement.
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