Bitcoin (BTC) saw a significant surge of over 6% on Friday following the announcement that Mt. Gox, the bankrupt crypto exchange, will be extending the deadline for creditor repayments.
Having initiated repayments to creditors in July, Mt. Gox has made substantial progress in completing various repayment stages as stated in a recent statement on their website.
“However, due to incomplete procedures from some creditors and issues during the repayment process, a significant number of rehabilitation creditors are yet to receive their repayments. In an effort to accommodate these creditors, the court-approved extension has shifted the repayment deadline from October 31, 2024, to October 31, 2025, Japan Standard Time.”
Once a dominant force in Bitcoin trading, Mt. Gox faced insolvency in 2014 following a hack that led to bankruptcy. Despite recovering most of its coins, the exchange has been navigating a complex bankruptcy process to repay former customers, causing uncertainty in the crypto market due to potential sell-offs.
As of writing, BTC is trading at $62,635, reflecting a more than 4% increase over the past day.
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