The failed bitcoin exchange, Mt. Gox, announced on Thursday, October 10, that it will extend the repayment period to its creditors until October 31, 2025. This decision has been made because some creditors have not yet completed the necessary procedures to receive their payments.
In a statement, Nobuaki Kobayashi, the court-appointed rehabilitation administrator leading the repayment process, emphasized that the majority of creditors have complied with the necessary procedures for the basic repayment, but some are experiencing problems during the payment process.
Kobayashi mentioned that many rehabilitation creditors have not received their refunds due to incomplete paperwork, and a significant number have faced issues with the payment process for various reasons.
Kobayashi, acting as the legal administrator of the reimbursement process, does not represent Mt. Gox as a business entity. His main task is to supervise the rehabilitation and manage payments to creditors under court supervision, although he does not have the status of a civil servant.
The current Mt. Gox wallet contains 44,905 BTC, valued at more than $2.7 billion. This news has relieved the bitcoin and cryptocurrency community, which had feared significant bitcoin sales resulting from the refunds. Mt. Gox had moved several hundred million dollars in BTC to other wallets during the year.
Founded in 2010, Mt. Gox was one of the first and largest bitcoin exchanges globally. However, in 2014, it suffered a major collapse due to a series of hacks and operational problems, leading to its bankruptcy.
The process of rehabilitation and repayment to Mt. Gox’s creditors has been complex and lengthy since then, marking a significant event in the history of cryptocurrencies.
This recent announcement from Mt. Gox highlights the complexities of legal and financial procedures involved in repaying creditors within the cryptocurrency context. The extension of the deadline until 2025 allows both the platform and creditors more time to resolve pending issues and ensure that everyone receives what they are entitled to, though it may indicate a slower process than initially expected.
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