Bitcoin (BTC) experienced a significant surge of over 6% on Friday following the news that the bankrupt crypto exchange Mt. Gox will be extending the deadline for its remaining creditor repayments. Mt. Gox initiated the repayment process in July and has made substantial progress in repaying its creditors, according to a statement released on the exchange’s website.
Despite the progress made, there are still a significant number of rehabilitation creditors who have not yet received their repayments due to various reasons. To address this issue, the Rehabilitation Trustee has obtained court approval to extend the deadline for repayments from October 31, 2024, to October 31, 2025, in order to ensure that all creditors receive their repayments to the extent reasonably practicable.
Mt. Gox was once a dominant player in the Bitcoin market, handling over 70% of the cryptocurrency’s trading volume. However, the exchange faced a major setback in 2014 when it was hacked and subsequently declared bankruptcy. Despite the challenges, Mt. Gox managed to recover most of its lost coins and has been working diligently to repay its former customers, albeit in a lengthy and complex process that has caused uncertainty in the crypto market.
As a result of the news regarding the extension of the repayment deadline, BTC saw a positive price movement, trading at $62,635 at the time of writing, reflecting a gain of over 4% in the past day.
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In conclusion, the extension of the repayment deadline by Mt. Gox signals a commitment to fulfilling its obligations to creditors and restoring confidence in the cryptocurrency market. Despite the challenges faced by the exchange in the past, the ongoing repayment process demonstrates progress towards resolving the aftermath of the hacking incident and rebuilding trust within the crypto community.