One of the early cryptocurrency exchanges has announced a delay in repaying its creditors for an additional year, with the new deadline set for October 31 next year. This decision comes shortly before the previous deadline of October 31 this year.
Creditors began to receive repayments in December 2023, nearly a decade after the exchange’s significant collapse. The appointed trustee confirmed that some payments were processed via bank transfers and PayPal, with additional repayments expected to continue throughout 2024 due to the high volume of claims and the variety of payment methods involved.
Most of the base, early lump-sum, and intermediate repayments for creditors who submitted necessary documentation have reportedly been completed, but many individuals are still waiting for their funds. The trustee indicated that the extension was approved by the court to guarantee that repayments can advance to the fullest extent practicable.
The exchange in question faced a major failure in 2014 after losing approximately 850,000 Bitcoin, resulting in a significant security breach. Out of the total, around 200,000 Bitcoin were later recovered, while approximately 650,000 Bitcoin still remain unaccounted for. This case has led to a lengthy rehabilitation process overseen by a Japanese court.
As the exchange holds a substantial amount of Bitcoin, there is increasing market interest, with some analysts cautioning that repayments to creditors might lead to selling pressure in the market. Recent data indicates that the exchange currently possesses around 34,690 Bitcoin, valued at nearly $4 billion, which is a significant decrease from the 142,000 Bitcoin it held in mid-2024.
Historically, this exchange once controlled more than 70% of global Bitcoin trading volume, and its collapse in February 2014 is regarded as a pivotal moment in the development of cryptocurrency. The ongoing developments surrounding creditor repayments and asset management are closely watched by analysts and stakeholders in the cryptocurrency ecosystem, as they could impact market dynamics and investor behavior going forward.