Bitcoin (BTC) surged by over 4% on Friday following the announcement that Mt. Gox, the defunct crypto exchange, will extend the repayment deadline for its remaining creditors.
Source: BNC Bitcoin Liquid Index
The new deadline has been pushed back by a full year, from October 31, 2024, to October 31, 2025, according to a statement published on the exchange’s website.
Source: MT Gox
Mt. Gox, once responsible for more than 70% of global Bitcoin trading, went bankrupt in 2014 after a major hack led to the loss of 850,000 BTC. The exchange has since recovered 140,000 Bitcoin and begun repaying creditors, though many still await their compensation.
According to the Mt. Gox trustee, the delay is due to issues with creditors completing the necessary repayment procedures. “Many rehabilitation creditors still have not received their repayments because they have not completed the necessary procedures,” the trustee said in a statement. The trustee added that the extension was granted with court approval to accommodate those creditors who have encountered difficulties in the repayment process.
This news was welcomed by traders, as a delay in repayments could ease immediate sell pressure on the market. Bitcoin, which dipped under $59,000 earlier in the week, climbed back above $62,200 after the announcement. Analysts from Coinbase, David Duong and David Han, noted that the postponement could “assuage near-term concerns around supply overhangs,” though they warned that volatility could return once the on-chain funds begin to move.
Mt. Gox began distributing around $9 billion worth of recovered assets in July, including Bitcoin, Bitcoin Cash, and Ethereum. However, data from Arkham Intelligence shows that wallets linked to the exchange still hold 44,900 BTC, worth approximately $2.8 billion. The ongoing uncertainty surrounding the timeline and scale of these repayments has generated concern within the crypto market.
This latest delay may provide temporary relief to Bitcoin investors who feared a flood of sell-offs as creditors finally receive their long-awaited funds. For creditors, it represents yet another chapter in a lengthy saga that began when Mt. Gox was hacked a decade ago.
The rehabilitation process, which aims to return nearly 90% of the lost assets to creditors, was approved in 2021. However, the repayment procedure has been marred by delays and logistical challenges, leaving many still waiting to reclaim their holdings.
