The trustee managing the assets of Mt. Gox, the once-largest cryptocurrency exchange, has announced a one-year delay in the repayment deadline for creditors. The decision, aimed at addressing logistical challenges and concerns about potential Bitcoin sell pressure, has been met with positive reactions from the market.
Mt. Gox, which was hacked in 2014, has been gradually repaying creditors the equivalent of nearly $9 billion in recovered assets. However, a significant portion of the remaining funds, including 44,900 Bitcoin (BTC) valued at over $2.8 billion, is still held in on-chain wallets.
The delay in repayments, according to the trustee’s statement, is due to various reasons, including incomplete procedures by creditors and challenges encountered during the repayment process. This decision has helped alleviate concerns about a potential flood of Bitcoin sales that could negatively impact the market.
Cryptocurrency analysts at Coinbase have noted that the postponement could reduce near-term pressure on Bitcoin prices, although they caution that there might be a potential downside volatility once the on-chain funds start moving again. Overall, the delay is seen as a positive development for the Bitcoin market, as it reduces the risk of a sudden influx of Bitcoin supply.
