The defunct Japanese cryptocurrency exchange, Mt Gox on Thursday dropped a crucial update about its repayment schedule and procedure. It has extended the deadline to compensate creditors to October 31, 2025. This gives more time to those who were facing issues during the reimbursement process.
Despite nearing completion for creditors who followed the process smoothly, many still haven’t completed the necessary steps or have encountered several problems. However, payments for these Mt Gox creditors have been delayed.
Mt Gox extends compensation deadline
According to the release, Mt Gox mentioned that the bankruptcy trustee has nearly completed compensating creditors who followed the required procedure. Meanwhile, some creditors are yet to complete their own steps.
It added that the trustee faced several problems during the compensation process that have temporarily prevented creditors from receiving their payments. In order to ensure that everyone gets a fair chance to claim their compensation, the bankruptcy trustee, with court approval, decided to stretch the deadline from October 31, 2024, to October 31, 2025.
This might come as a much relief for the digital assets market which was crumbling under the intense selling pressure.
Bitcoin regained the $61K mark after recording a dip of around 3% in the last 24 hours. BTC is trading at an average price of $61,126 as of press time, with the majority of the altcoins trading in the red.
The infamous hack
Once the world’s largest crypto exchange, Mt Gox filed for bankruptcy in 2014 after hackers stole 950,000 Bitcoin (now valued at $58 billion). The crypto exchange then blamed the hack on a bug in critical framework. It stated that coins might have been illicitly moved by hackers when the users were receiving incomplete transaction messages at the time of accessing the platform.
In the aftermath of the situation, Mt Gox recovered 140k of the missing Bitcoin after declaring bankruptcy. Notably, BTC was trading at around $600 at the time of the bankruptcy filing. The premier cryptocurrency is now worth over $61,000, down from its all-time high of $73,750 on March 14, 2024.
