Mt. Gox pushes back deadline to 2024 but some payments might still come this year

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By BitcoinWiki News

Key Takeaways:

– The deadline for Mt. Gox repayments has been extended by 12 months
– Repayments can now be made until October 31, 2024
– The decision to extend the deadline was made to allow rehabilitation creditors to provide necessary information and verify data
– Some repayments may be made by the end of this year for creditors who have already submitted required information
– Creditors who haven’t submitted required information are urged to do so in order to receive their repayments
– Mt. Gox was the largest bitcoin exchange, but collapsed in 2014 after losing over 800,000 bitcoin
– Mt. Gox still holds 142,000 BTC, 143,000 BCH, and 69 billion JPY
– The first 200,000 JPY of each creditor’s claim will be paid in yen, with the remaining amount being a mix of crypto and cash
– The delay in Mt. Gox repayments has been rumored to have influenced a recent price bounce in bitcoin
– QCP Capital predicts that bitcoin will reach $22,000 in October.


Heading: Mt. Gox Extends Repayment Deadline for Creditors

Summary:
The deadline for repayments to creditors of the defunct bitcoin exchange Mt. Gox has been extended by 12 months. The new deadline for base, intermediate, and early lump sum repayments is October 31, 2024, according to a letter from the Rehabilitation Trustee Nobuaki Kobayashi. This decision was made to allow sufficient time for rehabilitation creditors to provide essential information and for the verification process to take place. While some payments may still be made by the end of this year, the exact timing remains uncertain. Creditors who have not yet submitted the required information are urged to do so to initiate the repayment process.

Background:
Mt. Gox was a Tokyo-based bitcoin exchange that was launched in 2010 and became the largest exchange in the world by 2013, handling 70% of all bitcoin trades globally. However, in early 2014, the platform collapsed, withdrawals were stopped, and the company filed for bankruptcy protection after losing over 800,000 bitcoin. The exchange still holds a significant amount of cryptocurrency and Japanese yen, which it is now set to distribute to creditors.

Repayment Details:
The total amount of funds held by Mt. Gox includes 142,000 BTC ($3.9 billion), 143,000 BCH ($31.3 million), and 69 billion Japanese yen ($467 million). The repayment process will begin with the first 200,000 yen worth of each creditor’s claim being paid in yen. Claims above this amount that have chosen to receive crypto and cash repayments will receive a mix of approximately 71% in crypto and 29% in cash after the initial payment.

Impact and Speculation:
Earlier in the week, rumors of the repayment deadline extension led to a price bounce in the bitcoin market, with the cryptocurrency experiencing a more than 5% increase over the last week. Crypto trading firm QCP Capital attributed this bounce to the news of the delayed repayments. However, the firm still predicts that bitcoin will reach the $22,000 level in October.

Conclusion:
Mt. Gox creditors will have an additional 12 months to receive their repayments, with the new deadline set for October 31, 2024. The extension is intended to allow enough time for the verification process and coordination with banks, fund transfer service providers, and crypto exchanges involved in the repayments. Creditors who have not yet provided the necessary information are encouraged to do so in order to initiate the repayment process.

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