Mt. Gox Extends Repayment Deadline for Creditors
The Mt. Gox Rehabilitation Trustee has announced another extension of the repayment deadline for its creditors. The bankrupt cryptocurrency exchange has moved the deadline for Base Repayment, Early Lump-Sum Repayment, and Intermediate Repayment from October 31, 2023, to October 31, 2024. However, creditors who have provided the necessary information to the Trustee may receive repayments as early as the end of this year.
Mt.Gox’s Massive Debt to Creditors
Mt.Gox owes over $4.5 billion in cryptocurrencies and yen to its creditors. Originally, it was supposed to repay them by the end of October 2023, but now most creditors will have to wait longer. In 2011, the Japanese bitcoin exchange suffered a hack that resulted in the loss of 850,000 BTC, which accounts for 4% of all bitcoin that will ever exist. As a result, Mt.Gox filed for bankruptcy in 2014.
Repayment Plan and Impact on Cryptocurrency Prices
Despite the hack, Mt.Gox managed to recover some of the stolen funds and has devised a repayment plan. The exchange aims to return over $5 billion to its creditors, including 142,000 BTC ($3.84 billion), 143,000 BCH ($30 million), and 69 billion Yen ($465 million). This repayment is expected to have a significant impact on the price of cryptocurrencies.
Long Wait for Creditors
Creditors have been waiting for more than nine years to receive any form of compensation from Mt.Gox. Unfortunately, with this latest update from the trustee, some creditors will have to wait an additional year before they can be reimbursed for their losses.
Hot Take: Mt.Gox Continues to Delay Repayments, Leaving Creditors Waiting
Mt.Gox, the infamous cryptocurrency exchange that suffered a massive hack in 2011, has once again extended the deadline for repayments to its creditors. This delay means that creditors will have to wait even longer to receive compensation for their losses. With over $4.5 billion owed in cryptocurrencies and yen, the impact of Mt.Gox’s repayment plan on the cryptocurrency market is expected to be substantial. Unfortunately, creditors who have been patiently waiting for over nine years will now have to wait another year before they can expect any reimbursement. The long saga of Mt.Gox continues, leaving its creditors in limbo.
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