Mt. Gox, a collapsed cryptocurrency exchange, has issued a statement, extending its repayment deadline till 2024. The company was previously based in Tokyo and has been out of business for almost a decade.
In a recent development, the rehabilitation trustee for Mt. Gox, Nobuaki Kobayashi, announced a deadline change for its planned creditors’ repayment on September 21. According to the announcement, the new date has been set for October 31, 2024.
The reason for the extension
Mt. Gox had previously informed the public that it would complete the Base Repayment, the Early Lump-Sum Repayment, and the Intermediate Repayment by October 31, 2023. However, the firm has said that it will not meet this promise, consequently extending the period by one year.
Per the update, Mt. Gox cited several reasons for the postponement including; limited time for rehabilitation creditors to provide the necessary information, and for the rehabilitation trustee to verify this information, and engage with banks and designated crypto exchanges.
Due to these concerns, the Rehabilitation Trustee has said it will no longer be able to complete the aforementioned payments as scheduled, and as a result, it has changed the deadline for the Base Repayment, the Early Lump-Sum Repayment, and the Intermediate Repayment with the permission of the Tokyo District Court.
It is important to note, however, that creditors who have successfully provided the necessary information will begin to receive sequential repayments as early as the end of 2023. The rehabilitation Trustee also noted that the payment schedule is subject to change.
The fall of Mt. Gox crypto exchange
Before its collapse in 2014, Mt. Gox was one of the largest cryptocurrency exchanges in the world with nearly 1.1 million active accounts and users from over 239 countries globally. Also, the exchange accounted for about 90% of the global Bitcoin trading.
Sadly, in 2014, the platform fell victim to a hack that led to the loss of 850,000 Bitcoins (approximately $23 billion based on the current BTC price). Moving forward, the platform managed to recover about 20% of the stolen funds and has since been struggling with repayments for the last decade.
The fall of Mt. Gox through a hack underscores the need for security measures in the crypto industry. Over the years, there have been news of similar incidents across crypto exchanges. Recently, CoinEx fell victim, and over $54 million of customer funds were stolen.
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