Here’s Why Mt. Gox Extended Repayment Deadline To October 2025

Defunct Bitcoin exchange Mt. Gox has announced an extension of its repayment deadline for creditors. The new deadline has been extended by a year from October 31, 2024, to October 31, 2025.

Nobuaki Kobayashi, the Rehabilitation Trustee of Mt. Gox, made the decision in a document released on October 10. Kobayashi noted that the extension aims to facilitate a smooth and organized repayment process.

Ensuring Fair Compensation 

According to the announcement, the extension is necessary as many creditors have not received their repayments because they have not completed the required procedures. The additional time will allow the exchange to finalize its rehabilitation plans and ensure all affected users receive fair compensation.

Since the 2014 breach, Mt. Gox has been working on repaying creditors and has successfully returned over 68% of its funds to them. However, analysts expressed skepticism about the likelihood of Mt. Gox repaying creditors in full. Alex Thorn, head of research at Galaxy Digital, pointed out on X that only a tiny fraction of the funds will be allocated for creditor repayments, with the remainder going into a new cold storage owned by the exchange.

Mt. Gox Moves Over $700M

In August, Mt. Gox attracted the crypto community’s attention when an address linked to the exchange moved 13,265 BTC, valued at approximately $784 million at the time.

On-chain data reveals that 12,000 BTC was sent to an unidentified wallet starting with “1PuQB…,” while the remaining 1,265 BTC (approximately $74 million) was transferred to the address “1Jbez,” identified by Arkham as a Mt. Gox cold wallet. This movement is suggested as part of the exchange’s plan to reimburse creditors, who have been anticipating the return of their assets for a decade after Mt. Gox’s bankruptcy.

In related news, Mark Karpeles, the former CEO of Mt. Gox, revealed plans to launch a new crypto exchange called EllipX Exchange. The new platform is expected to provide enhanced security and transparency.