Cryptocurrency investors who trusted Mt. Gox with their funds learned this week they’ll have to wait even longer to be repaid. The news was posted on the disgraced platform’s website on Oct. 10.
Mt. Gox’s trustee extended the deadline to repay creditors to Oct. 31, 2025, one year longer than an earlier deadline. Coinbase analysts suggest the decision could “assuage near-term concerns around supply overhangs.”
“As it is desirable to make the Repayments to such rehabilitation creditors to the extent reasonably practicable, the Rehabilitation Trustee, with the permission of the court, has changed the deadline for the Repayments from October 31, 2024 (Japan Standard Time) to October 31, 2025 (Japan Standard Time),” a statement on the Mt. Gox website states.
A decade ago, Mt. Gox was the largest cryptocurrency exchange. It was hacked in 2014. At its height, the company handled an estimated 70% of all Bitcoin transactions.
Fast-forward a decade to July 2024, when Mt. Gox began repaying more than $9 billion in recovered assets. According to Arkham Intelligence, cryptocurrency wallets linked to Mt. Gox hold 44,900 BTC worth roughly $2.8 billion. When Mt. Gox went offline, 127,000 users’ funds were locked.
Mt. Gox reportedly plans to return nearly 142,000 BTC, along with Bitcoin Cash and fiat currency.
“Many rehabilitation creditors still have not received their Repayments because they have not completed the necessary procedures,” Mt. Gox’s trustee said. “A considerable number of rehabilitation creditors have not received their repayments due to various reasons, such as issues arising during the repayments process.”
Some believe the delay will calm markets, which feared a sudden influx of BTC from those patient investors.
“This could assuage near-term concerns around supply overhangs, though there could be room for downside volatility once those on-chain funds begin moving again,” Coinbase analysts David Duong and David Han said on Oct. 11.
According to managing trustee Nobuaki Kobayashi, several issues have contributed to the payment delay. They include creditors not properly completing procedures and technical issues such as double deposits to users. Those users were contacted to return overpaid funds.
Almost 42% of the funds have been redistributed to creditors. This is the equivalent of roughly 59,000 BTC.