Defunct Japanese cryptocurrency exchange Mt. Gox has extended its deadline for repaying its creditors to October 31, 2025, following a court ruling on October 10, 2024.
JUST IN: Mt. Gox repayment deadline extended to October 2025. Market relieved as concerns over potential selloff eased. #MtGox
— Breaking Whale (@BreakingWhale) October 10, 2024
The new schedule, which is a year later than originally planned, has brought optimism to the cryptocurrency market by easing concerns about a short-term Bitcoin sell-off.
Why Mt. Gox Redemption Was Extended
Mt. Gox’s rehabilitation administrator, Nobuaki Kobayashi, explained that the extension was necessary to give all creditors time to complete the necessary procedures .
Since the repayment process began in July, many creditors have encountered obstacles and needed additional time.
Kobayashi emphasized the need to repay “to the extent reasonably practicable” in his bid for a court-approved extension.
Despite the delay, Mt. Gox has already repaid its creditors, who have not experienced any problems in the repayment process.
Around 21,000 creditors received Bitcoin (BTC) and Bitcoin Cash (BCH) through platforms such as Kraken, Bitstamp, and BitGo.
Once one of the largest Bitcoin exchanges, Mt. Gox collapsed in 2014 after a hack resulted in the loss of 950,000 BTC (worth over 58 billion USD in today’s dollars).
The exchange has faced numerous legal and financial challenges in trying to repay its creditors, and this extension is the latest development in a long-running process.
Mt. Gox Redemption: Market Reaction and Selling Concerns
Fears of a massive sell-off in cryptocurrency markets have eased as redemption deadlines have been extended.
According to blockchain data, there are currently 44,900 BTC stored in Mt. Gox wallets, equivalent to approximately 2.75 billion USD.
Earlier this year, Mt. Gox transferred 13,265 BTC (worth 782 million USD) to an unknown wallet and 1,265 BTC to an internal wallet in preparation for a redemption process.
While this move has helped calm market anxiety in the short term, the market remains cautious as the 2025 maturity date approaches. While this delay has provided temporary relief, the market is likely to remain cautious as the new 2025 maturity date approaches.
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