The long-standing saga of crypto exchange Mt. Gox takes another turn.
Crypto exchange Mt. Gox trustee Nobuaki Kobayashi announces a deadline extension for creditor repayments. Originally slated for October 31st, 2023, the new deadline is set for October 31st, 2024.
On September 21st, Nobuaki Kobayashi sent a letter stating that the Tokyo District Court had authorized the extension.
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In the letter, Kobayashi explained that the base repayment, the early lump-sum repayment, and the intermediate repayment deadlines were all subject to this change.
Kobayashi also provided a glimmer of hope for some rehabilitation creditors, stating that repayments for those who have submitted the required information could begin as early as the end of this year.
Please note that the schedule is subject to change depending on the circumstances, and the specific timing of repayments to each rehabilitation creditor has not yet been determined.
To offer some context, Mt. Gox was an early giant in the cryptocurrency exchange arena, responsible for over 70% of all blockchain-based trades at its peak. However, the crypto exchange met its downfall following a significant hack in 2011 and eventually collapsed in 2014 due to supposed insolvency.
The following chaos affected approximately 24,000 creditors and led to a staggering 850,000 Bitcoin (BTC) loss. The Mt. Gox estate holds a substantial sum, including 142,000 BTC, 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen. These assets are central to the ongoing repayment efforts.
With this new deadline extension, the lengthy ordeal for Mt. Gox's creditors looks set to continue for another year. But the possibility of early repayments for some provides a flicker of light at the end of what has been a very long tunnel. Whether this new timeline will hold or be subject to further changes remains to be seen, but it's an important update in one of the cryptocurrency world's most infamous sagas.