Mt.Gox Delays Compensation Deadline to 2025

The management of the bankrupt bitcoin exchange Mt.Gox has announced a postponement of the compensation deadline from October 31, 2024, to October 31, 2025. 

“Since it is desirable to make rehabilitation creditor repayments to the extent practically possible, the trustee, with court approval, has changed the repayment deadline from October 31, 2024, to October 31, 2025,” the statement reads.

In September 2023, Mt.Gox had already postponed the compensation date from October 31, 2023, to October 31, 2024. 

The latest delay temporarily eases concerns about the potential impact of the exchange’s clients selling the first cryptocurrency on its price. Throughout 2024, Mt.Gox moved bitcoins worth $9 billion, $6 billion, $2.85 billion, $2.25 billion, and $784 million.

Some experts believe that the impact of compensation payments on the price of digital gold is overstated. JPMorgan noted that sales by Mt.Gox creditors exert pressure on the market. Glassnode added that most recipients of the payments can be considered hodlers, which potentially mitigates the scale of the impact.

Mt.Gox clients have been waiting for the return of their funds for ten years. The civil rehabilitation process began in June 2018. In 2021, the Tokyo court approved the plan proposed by the exchange.

The trustee presented the compensation proposal in December 2020. In January 2021, the plan details became known, and in February, the court approved it for subsequent voting. About 83% of users supported the compensation initiative.

In December 2023, Mt.Gox creditors began receiving payments.

Back in September 2024, former Mt.Gox owner and CEO Mark Karpeles announced the launch of a new cryptocurrency exchange, EllipX, in Poland, focusing on “transparency” and user convenience.