Mt. Gox Extends Repayment Deadline to October 2025 Following Court Approval

Mt. Gox Extends Repayment Deadline to October 2025 Following Court Approval

Mt. Gox, the now-defunct Japanese cryptocurrency exchange, has extended its repayment deadline to October 31, 2025. This decision, announced on October 10, 2024, was approved by the courts to allow creditors more time to complete necessary procedures. The extension has sparked optimism in the crypto market, calming fears of an immediate Bitcoin selloff.

Reasons Behind the Repayment Extension

Mt. Gox’s Rehabilitation Trustee, Nobuaki Kobayashi, cited complications in the repayment process that began in July 2024 as the main reason for the delay. Many creditors faced challenges completing the necessary steps for repayment, prompting the need for additional time. Kobayashi assured that repayments would continue to be made "to the extent reasonably practicable."

Despite the extended deadline, a significant portion of creditors have already received their Bitcoin (BTC) and Bitcoin Cash (BCH) payments through platforms such as Kraken, Bitstamp, and BitGo. To date, approximately 21,000 creditors have been compensated.

Mt. Gox’s Long-Running Efforts and Market Impact

Mt. Gox, once the world’s largest Bitcoin exchange, collapsed in 2014 following a hack that resulted in the loss of 950,000 BTC, valued at over $58 billion today. Since then, the exchange has faced numerous legal and financial challenges in its efforts to repay creditors. The latest deadline extension is part of this lengthy process.

The new repayment schedule has relieved market concerns about a near-term Bitcoin selloff, with blockchain data showing that Mt. Gox wallets hold 44,900 BTC, worth around $2.75 billion. Earlier in 2024, the exchange moved 13,265 BTC to an unknown wallet, likely in preparation for creditor repayments.

While the extension provides temporary relief, the cryptocurrency market remains cautious, with the 2025 repayment deadline potentially reigniting concerns over a large-scale selloff.