Mt.Gox exchange again postponed its repayment plan by one year citing some legal reasons.
Mt.Gox was a popular Japan-based Bitcoin exchange. In early 2014 this exchange was processing nearly 70% of the global Bitcoin transactions. In the same year, people came to know that they had faced some hacking incidents in 2011 and later the Mt.Gox executives tried to change the customer’s Bitcoin transaction history in order to remain away from any compensation process. Later investigation found that not only Mt.gox executives manipulated transaction data but was also involved in illegal money transactions with the help of its platform. On 28 February 2014, this bitcoin exchange filed for bankruptcy in Tokyo. Also on 9 March 2014, the exchange filed for bankruptcy protection in the US, to remain away from legal actions.
Following the long-term bankruptcy proceedings, the exchange planned to repay the customers’ funds by October 31, 2023.
Just a day ago, Mt.Gox rehabilitation trustee Nobuaki Kobayashi confirmed that he will not be able to release the payment from time, so is going to extend it by a year.
It is not the first time when rescheduling its repayment plan, earlier they postponed this plan several times.
Before this postponed plan, few people were expecting that Mt.Gox repayment news would act as a big catalyst to bring a sudden dump in the trade price of Bitcoin, as huge numbers of people would try to sell received funds.
Some people claimed that Mt.Gox postponed repayment plans because of the current market sentiments and waiting for the bull run so that it could easily distribute the former customers’ funds without any big market correction.
Some people are comparing bankrupt crypto exchange FTX with Mt.gox and claim that it will take a decade for the FTX’s former customers to get their funds back, as FTX bankruptcy proceedings will go through the conflict between several jurisdictions.
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