Since declaring bankruptcy in 2014, creditors of defunct bitcoin exchange Mt.Gox have been awaiting payment after losing more than 850,000 bitcoins (BTC) due to major security breaches. Initially, the repayment deadline was set at October 31, 2025, but has now been extended until October 31, 2026.
Mt.Gox Trustee Updates
Nobuaki Kobayashi, Rehabilitation Secretary, Ft to update This indicates that, with a few exceptions, the basic repayments, early lump sum repayments, and intermediate repayments to rehabilitation creditors have largely been completed.
These installments were paid to creditors who fulfilled the necessary procedures and did not encounter any problems during the payment process.
However, many creditors are yet to receive their dues Payments Due to “incomplete procedures or various complications” – which the statement did not disclose – that arose during the payment process.
To facilitate these reimbursements, the Rehabilitation Trustee of Mt. Gox, with court approval, has postponed the payment deadline to October 31, 2026.
Ups and downs
At its peak, Mt.Gox was the largest Bitcoin exchange in the world, responsible for handling 70% to 80% of Bitcoin trading volume. Its prominent position in Cryptocurrency industryHowever, this made it a target for hackers, resulting in frequent security issues.
In 2011, hackers exploited stolen credentials to transfer bitcoin, and shortcomings in the network protocol led to the loss of several thousand bitcoins that same year.
By early 2014, customer frustrations were increasing as they faced difficulties in withdrawing funds. Technical errors created uncertainty about transaction details, particularly regarding whether bitcoin was successfully transferred to customer wallets.
This issue is due to a bug in the Bitcoin software that allows users to change Transaction IDsknown as “tradability of transactions”. While this claim was disputed within the community, an agreement was reached in late 2021 to address these issues.
Creditors face delays and uncertainty
The situation escalated in February 2014 when Mt.Gox suspended withdrawals after suspicious activity was detected in Digital walletsShe eventually revealed that she had “lost” hundreds of thousands of bitcoins. Estimates of the total missing ranged from 650,000 to 850,000.
Between October 2019 and October 2020, trustee Nobuaki Kobayashi extended the deadline for filing claims five times. In November 2021, Kobayashi announced the rehabilitation plan that had been agreed upon between the courts and Japanese creditors.
Despite these developments, Mt.Gox has faced criticism for its lack of communication regarding why this happened Extended deadlines. Creditors will now have to wait an additional year for potential repayments, which may be obtained at a significant discount compared to current market rates.
At the time of writing, Bitcoin is trading at $114,813, with gains of 2% and 3.5% in the 24-hour and seven-day time frames, respectively. This puts the market-leading cryptocurrency just 8.8% below its all-time high of $126,000.
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