Mt. Gox Repayments Extended by Another Year
The trustee responsible for repaying creditors of the defunct crypto exchange Mt. Gox has announced a one-year extension to the repayment deadline. The new deadline, now set for October 31, 2024, will likely disappoint those who are still owed money by the exchange.
Reasons for the Extension
The extension was granted with the permission of the Tokyo District Court and covers the base repayment, early lump-sum repayment, and intermediate repayment deadlines. According to a letter from the trustee, gathering information from rehabilitation creditors and verifying it with banks and exchanges has caused delays. However, some rehabilitation creditors who have already provided necessary information may receive repayments by the end of this year.
Previous Deadline Extensions
This is not the first time that deadlines for Mt. Gox creditors have been extended. Initially set for March 10, the selection and registration deadlines were later moved to April 6, 2023.
Mark Karpelès’ Defense
Co-founder of Mt. Gox, Mark Karpelès, recently stated that he is using a scientific calculator in jail to prepare his defense. He believes this tool will help him prove that the company earned more than it spent.
The Rise and Fall of Mt. Gox
Mt. Gox was once a leading cryptocurrency exchange, handling over 70% of all Bitcoin trades at its peak. However, in February 2014, the exchange filed for bankruptcy protection after losing over 800,000 BTC due to suspicious wallet activity.
Hot Take: Mt. Gox Repayment Delay Raises Concerns
The one-year extension of the Mt. Gox repayment deadline has raised concerns among creditors eagerly waiting to be compensated for their losses. While the delay is attributed to the time-consuming process of gathering and verifying information from rehabilitation creditors, it prolongs the uncertainty surrounding the distribution of assets. This situation underscores the importance of secure and transparent crypto exchanges and highlights the need for regulatory measures to protect investors in the rapidly evolving cryptocurrency landscape.
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