Mt. Gox Postpones Repayment Deadline to 2025, Allaying Concerns of Bitcoin Selling Pressure
The Mt. Gox trustee postponed the deadline to repay creditors by one year to October 31, 2025.
The delay “could assuage near-term concerns around supply overhangs,” Coinbase analysts said.
The trustee managing the assets of Mt. Gox postponed the deadline to distribute remaining assets to creditors by one year to October 31, 2025, according to a Thursday statement published on the Mt. Gox website.
Mt. Gox, which was once the largest crypto exchange before it imploded due to a hack in 2014, started repaying nearly $9 billion of recovered assets to creditors this July after many years of delays. However, crypto wallets linked to Mt. Gox still hold 44,900 bitcoin (BTC) worth $2.8 billion, Arkham Intelligence data shows.
“Many rehabilitation creditors still have not received their Repayments because they have not completed the necessary procedures,” the Mt. Gox trustee’s statement said. “A considerable number of rehabilitation creditors have not received their Repayments due to various reasons, such as issues arising during the Repayments process.”
Bitcoin prices earlier this year reacted negatively to the news of the looming Mt. Gox distribution and and on-chain transfers over the past months, as observers pondered how much of those assets creditors will sell on the open market after waiting to reclaim their holdings for ten years. Delaying the repayment deadline by one more year could lessen those worries.
“This could assuage near-term concerns around supply overhangs, though there could room for downside volatility once those on-chain funds begin moving again,” Coinbase analysts David Duong and David Han said in a Friday report.
