bankruptcy

The #bankruptcy exchange #Mt.GOX has again shifted the deadline for paying creditors. Now the victims of the platform's collapse will receive their money only by October 31, 2025

Cryptocurrency #exchange Mt. Gox went bankrupt back in 2014 and has not yet completed the process of paying out funds to creditors affected by the collapse of the trading platform.

The deadline is being pushed back again

The new document states that most creditors have already received basic, interim and early payouts. However, some of the creditors have still not completed all the necessary procedures or have faced some problems during the disbursements.

“Many creditors have still not received their disbursements because they have not completed the necessary procedures to receive them. In addition, a significant number of rehabilitation lenders have not received their disbursements for various reasons, such as problems encountered during the disbursement process,” Mt. Gox said in a statement.

As a result, the deadline to receive these payments has been extended from October 31, 2024 to October 31, 2025 (Japanese time).

Cryptans aren't too upset

As of this writing, $BTC
is trading at $61,074. Over the past 24 hours, the cryptocurrency has slipped just over 1%. At the same time, bitcoin did not show any reaction specifically to the news from #MtGox .

According to Arkham, the Mt. Gox crypto wallet currently holds 44,905 bitcoins totaling over $2.7 billion at the current exchange rate. This is a significant amount of money, which is why many members of the crypto community have long feared that the exchange's payouts could “sink” BTC.

“Now the selling pressure on bitcoin after the $4 billion payout is a problem as early as 2025,” rejoiced a user on X (formerly Twitter) in his tweet.

Meanwhile, the bankrupt exchange has already moved its BTC holdings in the past. For example, on May 28, Mt. Gox moved $8.7 billion worth of crypto. Then representatives explained that this is how the trading platform is preparing for the first payments to creditors.

By the end of July this year, the platform had moved another 37,477 bitcoins worth $2.5 billion (at the exchange rate at the time). After that, the exchange reported that it had already completed 60% of payments to creditors.
#10MTradersLeague

If a cryptocurrency exchange declares bankruptcy, the fate of subscribers' funds can be significantly affected, and this depends on several factors:
1. Legal Ownership Structure:
In the event of bankruptcy, platform funds are treated as business assets. If the platform is subject to bankruptcy laws, assets may be liquidated to pay off debts. This means that users may not receive their full funds.
2. Type of assets:
If the assets are stored in platform-specific wallets, they may be difficult to recover. In some cases, the assets may be under the control of creditors.
3. Asset Insurance:
Platforms like Binance do not offer government insurance like the FDIC in traditional banks. So, there is no guarantee of getting your money back in case of bankruptcy.
4. Voluntary Bankruptcy vs. Involuntary Bankruptcy:
If the bankruptcy is voluntary (optional), there may be an opportunity to restructure the business and recover some assets. If the bankruptcy is involuntary, the situation may be worse.
5. Legal Investigations:
The bankruptcy of the platform may lead to legal investigations, which may complicate the process of recovering funds.
6. Previous Experience:
Some platforms that went bankrupt in the past, such as Mt. Gox, left many users without money. Some users got part of their money back after years of legal proceedings.
#cryptocurreny #bankruptcy
$BTC