The defunct crypto exchange Mt. Gox, which shut down almost 10 years ago, has postponed its repayment to a later date. The exchange announced moving the repayment deadline from October 31, 2023, to October 31, 2024, with the permission of the Tokyo district court.
In a letter, Mt. Gox stated that the change occurred due to the possibility of the trustee not meeting the deadline, considering the protocols involved.
Specifically, Mt. Gox explained that “given the time required for rehabilitation creditors to provide the necessary information and for the Rehabilitation Trustee to confirm such information and engage in discussion and share information with banks, fund transfer service providers, and designated cryptocurrency exchanges, etc., involved in the repayments, which are required before the repayments can be made, the Rehabilitation Trustee will not be able to complete the repayment 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.”
Mt. Gox in 2014 filed for bankruptcy after it suffered an exploit that affected 24,000 creditors, resulting in a total loss of 850,000 BTC. An update by the exchange trustee, Nobuaki Kobayashi, in 2022 stated that the Restriction Reference Period for all victims would start from September 15, 2022.
During this period, creditors would begin to submit claims and documents regarding their listed assets. However, in April 2023, Mt. Gox announced that repayment, initially scheduled for that month, has been postponed to a later date.
For rehabilitation creditors who have already provided the necessary information to the Rehabilitation Trustee, repayment will be made at the end of the year in sequence, according to Mt. Gox.
Moreover, the announcement did not specify the exact timing of repayment for each rehabilitation creditor. The Mt. Gox repayment has long sparked sentiments in the crypto market, with speculation about a pump or dump following the repayment.
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