The Rehabilitation Trustee of Mt. Gox has announced another extension for the repayment timeline to its creditors.
The beleaguered cryptocurrency exchange has pushed the deadline for the Base Repayment, the Early Lump-Sum Repayment, and the Intermediate Repayment from October 31, 2023, to a year later on October 31, 2024.
Yet, there’s a silver lining. According to the most recent announcement on the Mt. Gox website, those rehabilitation creditors who have furnished the necessary details to the Trustee are positioned to start receiving repayments in an orderly manner as soon as the close of the current year.
Mt.Gox Owes Creditors Over $4.5 Billion in Crypto and Yen
According to recent updates, Mt.Gox will postpone repayments to a majority of its creditors, deviating from its original schedule which intended repayments by October 2023.
Back in 2011, the Japanese-based bitcoin exchange faced a significant setback when it was hacked, resulting in the loss of 850,000 BTC. To put this into perspective, that’s 4% of the total 21 million bitcoins that will ever circulate.
By 2024, the exchange, which once handled over 70% of all bitcoin transactions globally, filed for bankruptcy.
On the upside, Mt.Gox was able to retrieve a portion of the misappropriated funds and has since established a plan to reimburse its creditors.
Mt.Gox, the defunct exchange, is preparing to disburse more than $5 billion to its creditors, an action that many experts predict could significantly influence the price trajectory of the primary cryptocurrency.
As per the outlined plan, the exchange commits to repaying its creditors in various assets: 142,000 BTC, valued at approximately $3.84 billion; 143,000 BCH, amounting to around $30 million; and 69 billion Yen, equivalent to about $465 million as of the current exchange rate.
The saga has been drawn out for creditors, who’ve been in a waiting game for over nine years, hoping to recover some form of restitution from the beleaguered exchange.
The most recent communication from the trustee of the exchange indicates that some creditors may need to exercise patience for an additional year before witnessing any repayment for the assets they lost.
