Artificial Intelligence Summary
According to Cointelegraph, the defunct cryptocurrency exchange Mt. Gox has extended the deadline for repaying its debts to its creditors by one year, moving the due date to October 31, 2025. The decision was made because many rehabilitation creditors have not yet received their payments due to incomplete procedures.
Mt. Gox was one of the oldest cryptocurrency exchanges, once handling nearly 70% of all global Bitcoin (BTC) transactions. However, a series of security breaches and unnoticed hacks led to withdrawals being halted and eventually collapsed in 2014, locking up the funds of around 127,000 users.
In July, the trustee that manages Mt. Gox’s assets began distributing about $9.4 billion in funds to creditors. To date, wallets linked to the exchange are still owed $2.8 billion in assets, according to data from Arkham Intelligence. Trustee Nobuaki Kobayashi said that many creditors have not received their payments due to various issues, including a system error that led to double deposits for some users. The exchange has since asked for the overpaid funds to be returned.
The repayment process has raised concerns about its potential impact on bitcoin prices. By the end of July, more than 41.5%, or 59,000 bitcoins, had been redistributed to creditors. A report by analytics firm Glassnode suggested that creditors were holding about $4 billion in funds at the time.
The collapsed exchange is set to return a total of 141,686 bitcoins to creditors, along with bitcoin cash (BCH) and fiat currencies, after a decade of waiting and legal battles in Japan. Bitcoin is currently trading at $62,926, reflecting a 5.3% increase in the past 24 hours.
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