The Mt. Gox trustee has extended the repayment deadline for creditors to October 2025, delaying the release of $2.8 billion worth of Bitcoin.
The trustee responsible for managing the assets of Mt. Gox, the defunct cryptocurrency exchange, has announced a one-year extension for repaying its creditors. According to a statement on the Mt. Gox website, the new deadline for repayment is now set for October 31, 2025. The delay follows challenges in processing repayments, with many creditors still not having received their due funds after failing to complete the necessary procedures.
Mt. Gox delays creditor repayment deadline to October 2025, easing immediate concerns over #Bitcoin sell pressure. pic.twitter.com/4XNBW0vUcm
— TFTC (@TFTC21) October 11, 2024
Mt. Gox, which was once the largest Bitcoin exchange before its collapse in 2014 following a major hack, had begun distributing approximately $9 billion in recovered assets to creditors in July 2023. However, the trustee's latest report reveals that around 44,900 Bitcoin (BTC), valued at roughly $2.8 billion, remain unpaid.
“Many rehabilitation creditors still have not received their repayments because they have not completed the necessary procedures,” stated Nobuaki Kobayashi, the trustee overseeing the process. Kobayashi noted that other issues, such as complications during the repayment process, have also contributed to the delay.
The decision to push the repayment deadline is seen as a relief to the Bitcoin market, as concerns had been mounting about the potential sell pressure caused by creditors offloading large amounts of Bitcoin once they were repaid.
The Mt. Gox repayment process, which affects roughly 127,000 users who had their funds locked following the exchange's collapse, has been closely watched by investors. Mt. Gox was one of the first major Bitcoin exchanges, at one point handling about 70% of global Bitcoin transactions before suffering from multiple security breaches.
Despite the progress made in returning assets to creditors, some recipients experienced issues during the repayment process. In one instance, the exchange reported a system error that resulted in double deposits to some users, prompting the exchange to demand the return of the excess funds.
The extension of the repayment deadline to 2025 delays concerns about Bitcoin’s price impact, with approximately $2.8 billion worth of Bitcoin still to be redistributed. As the deadline looms in 2025, analysts expect the possibility of increased market volatility once the remaining funds are finally returned to creditors.
