- Mt. Gox has extended the repayment deadline to 2025, alleviating immediate market fears of a massive Bitcoin sell-off and providing more time to resolve creditor issues.
- The extended deadline may help stabilize the Bitcoin market by delaying potential large-scale sell-offs, allowing for a more controlled approach to repaying creditors.
Mt. Gox, the once-prominent Bitcoin exchange that went bankrupt after a massive 2014 hack, has extended its repayment deadline for creditors to October 31, 2025. The exchange, which lost a significant amount of Bitcoin during the breach, has faced long-standing challenges in repaying creditors. Interestingly, Bitcoin reached a peak of $65,616 amid fears of a Mt. Gox distribution, as CNF recently highlighted.
As shared in a recent tweet by community member DJBubblegum.sats: “Mt. Gox Repayments Deadline Extended to October 2025.”
🚨 JUST IN: Mt. Gox Repayments Deadline Extended to October 2025.
$4B payment selling pressure now shifted to 2025 🚀📈
— DJBubblegum.sats 🟧 (@bubblegum_dee) October 10, 2024
While many creditors have completed the necessary procedures, several have encountered issues, causing delays in the repayment process.
As a result, Mt. Gox has pushed back the deadline, easing some concerns in the crypto community about the potential sell-off of large amounts of Bitcoin. The exchange currently holds 44,905 BTC, valued at over $2.7 billion, in its wallet. Earlier fears of a $4 billion Bitcoin sell-off in 2024 have now been pushed to 2025, providing some relief to investors who had anticipated market disruptions.
In August, Mt. Gox made significant transactions, transferring 13,265 BTC worth $782 million to an unknown wallet and another 1,265 BTC to an internal wallet. These moves are believed to be part of the platform’s efforts to prepare for creditor repayments. Despite these transactions, the extended deadline provides more time for Mt. Gox to complete the process and ensure all creditors receive their dues.
Reiterating a recent discussion in a CNF post about the Mt. Gox repayment process that kicked off late this week, which has caused significant volatility in the Bitcoin market. With this extension, investors and creditors alike are now looking to 2025 for the final resolution of the long-running Mt. Gox saga. Bitcoin (BTC) is currently trading at $61,102 with an increase of 0.13% in the past day. See BTC price chart below.
