Originally published on: October 11, 2024
The once-prominent crypto exchange Mt. Gox has recently extended its deadline to repay creditors, now set for October 31, 2025. This delay comes as many rehabilitation creditors still await their funds due to incomplete procedures.
In its heyday, Mt. Gox handled a staggering 70% of global Bitcoin transactions before facing security breaches and hacks that led to its collapse in 2014, leaving 127,000 users locked out of their funds.
Currently, the trustee managing Mt. Gox’s assets has distributed $9.4 billion to some creditors, though approximately $2.8 billion is still owed according to data from Arkham Intelligence. The repayment process faced setbacks such as double deposits to users, prompting the exchange to reclaim overpaid funds.
This prolonged repayment saga has stoked concerns about its impact on Bitcoin prices. As over 41.5% of Bitcoin designated for creditors has been distributed, Glassnode reports show creditors holding onto approximately $4 billion worth of assets. With the exchange returning a total of 141,686 Bitcoin and other forms of currency after years of legal battles, the cryptocurrency market is closely monitoring how this process may affect prices.
As the saga continues, many wonder what crypto exchanges truly do with users’ money and how these events may shape the future of the digital asset landscape. Stay informed on the latest business trends in blockchain and crypto by subscribing to our Crypto Biz newsletter for valuable insights every Thursday.
