Mt. Gox, the now-defunct cryptocurrency exchange, has extended its deadline to repay some of its creditors to 2025. In a statement released today, Mt. Gox stated that the bankruptcy trustee is almost done paying creditors who have followed all the rules and had no problems getting paid.
However, many creditors still haven’t finished the necessary steps, so they haven’t gotten paid back. Furthermore, a large number of creditors have been temporarily prevented from getting their reimbursements due to a variety of issues that arose during the compensation procedure.
With permission from the court, the bankruptcy trustee has extended the deadline for payment from October 31, 2024, to October 31, 2025, in order to provide equitable reimbursement for these creditors.
The Mt.Gox Bankruptcy: When Did It Happen?
From 2010 until 2014, the bitcoin exchange Mt. Gox had functioned properly and peacefully in Japan. At its height, it handled almost 70% of all Bitcoin transactions.
However, the exchange had filed for bankruptcy in 2014. Although the exchange filed for bankruptcy in 2014, legal action and conjecture about it persisted for years. Because of its notoriety in the Bitcoin space, Mt. Gox was frequently the target of hackers and had security issues while it was in business. Hackers transferred Bitcoins in 2011 by using passwords they had obtained.
Several thousand Bitcoins were “lost” in that same year due to flaws in network protocols. Customers also complained more and more about difficulties withdrawing money in the months preceding February 2014.
Technical issues made it difficult for the business to fully understand transaction details, including whether or not bitcoins had been moved to clients’ virtual wallets.
Will The Crypto Market React?
Any news related to Mt.Gox’s money BTC transfer or repayment is usually a market-moving topic. As the cryptocurrency market grows, traders and watchers will continue to close attention to the ongoing repayments from Mt. Gox and other notable liquidations.
The news will likely have an impact on the market in the coming days just as it has had in the past. However, if traders choose to overlook the overall repayment extension, the market might stay on its current trajectory without being disturbed much.
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