Mt. Gox Granted Extension for Repayment Deadline
The defunct cryptocurrency exchange Mt. Gox has received court approval to extend its repayment deadline by another year. However, rehabilitation creditors who have provided their details to the Mt. Gox trustee may still receive their repayments as early as the end of 2023. The original plan was to complete repayments by October 31 of this year, but this timeline is no longer feasible.
Revised Repayment Deadline
In a letter dated September 21, Mt. Gox rehabilitation trustee Nobuaki Kobayashi announced that the Tokyo District Court has allowed a change in the deadline for repayments. The new deadline for Base Repayment, Early Lump-Sum Repayment, and Intermediate Repayment is October 31, 2024.
“The Rehabilitation Trustee will not be able to complete the repayments above by the deadline of the Base Repayment, the Early Lump-Sum Repayment, and the Intermediate Repayment, all of which were set for October 31, 2023.”
However, if creditors have provided their necessary details, they may receive their repayments by the end of this year. It’s important to note that the schedule is subject to change depending on circumstances and specific timing, which may cause further delays.
Long-Awaited Repayments
Creditors have been waiting for almost a decade to receive their repayments from Mt. Gox. The exchange has continuously postponed the process. While the rehabilitation trustee initially aimed to complete repayments this year, discussions with banks, fund transfer service providers, and designated cryptocurrency exchanges have taken longer than anticipated.
Potential Impact on Bitcoin Prices
The Mt. Gox repayment could have an impact on Bitcoin prices as creditors may choose to sell or swap their assets. Large movements of cryptocurrency usually follow a significant price dump. However, experts believe that the delay will not have a significant effect on Bitcoin prices and may even bring about upside momentum.
Currently, Mt. Gox holds 142,000 BTC, 143,000 BCH, and 69 billion yen, among other assets. The price of BTC is currently trading at $27,025 and is gradually approaching the psychological level of $30,000.
Hot Take: Mt. Gox Repayment Deadline Extended Again
The defunct cryptocurrency exchange Mt. Gox has been granted another year to meet its repayment obligations. While this news may disappoint creditors who have been waiting for nearly a decade, there is hope that repayments may begin by the end of 2023 for those who have provided their details. The delay in repayments could potentially impact Bitcoin prices as creditors consider selling or swapping their assets. However, experts believe that the overall effect on Bitcoin prices will be minimal and may even result in an upward movement. As the saga continues, it remains to be seen when Mt. Gox will fully reimburse its creditors.
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