The deadline to repay creditors has been pushed out from October 31, 2023 to October 31, 2024 with approval from the Tokyo District Court.
Nobuaki Kobayashi, the trustee handling the Mt Gox bankruptcy, has officially announced an extension of the repayment deadline for creditors of the defunct cryptocurrency exchange.
Kobayashi announced in a letter posted on September 21 that the deadline has been pushed out from October 31, 2023 to October 31, 2024 with approval from the Tokyo District Court.
This applies to the base repayment as well as early lump sum and intermediate repayments.
According to Kobayashi, the extra time is required for rehabilitation creditors to supply crucial information, as well as for the trustee to check details and cooperate with financial institutions involved in the process.
There is some hope that repayments may begin sooner, as the letter noted that they might begin as early as the end of this year for creditors who have supplied sufficient evidence. However, Kobayashi noted that the timing could change due to unforeseen circumstances.
The Mt Gox estate holds around 142,000 BTC. According to CoinMarketCap data, this is currently worth around $3.8 billion. The estate also holds 143,000 in Bitcoin Cash (BCH), worth approximately $30 million and 69 billion Japanese Yen (around $465 million).
Mt Gox was once the world's largest Bitcoin exchange but collapsed in 2014 after over 850,000 BTC, worth a staggering $22.7 billion at today’s prices, belonging to customers and the exchange were stolen in a hack.
Over the last eight years, there have been various delays in the repayment process as the trustee works to recover lost funds and work out a plan to satisfy creditors.
Read more about the Mt Gox hack here.
The drawn out bankruptcy process continues for victims of one of the largest crypto hacks to date. Many investors are also keeping a close eye on the situation, with many believing that the payout may result in a significant unlock and sell pressure on Bitcoin.
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