Mt. Gox Pushes Payout Deadline to 2026, Victims Face Further Delays

Mt. Gox Pushes Payout Deadline Yet Again, Disappointment Mounts for Victims

The saga of Mt. Gox, once the titan of cryptocurrency exchanges, continues to drag on, leaving its victims in a prolonged state of anticipation. The Mt. Gox Property Trust, tasked with distributing remaining assets, has announced another significant delay, pushing the payout deadline to October 2026. This latest postponement, just days before the previously set October 31, 2025, deadline, marks the third such extension since initial plans were laid out.

A Long Road to Recovery, Paved with Delays

In a statement released on Monday, the trust revealed that it has largely completed the foundational payout processes, including lump-sum prepayments and interim distributions, for creditors who successfully navigated the qualification procedures without a hitch. As of late July 2024, approximately 40% of the assets owed to creditors, estimated at a staggering $2.7 billion, have reportedly been disbursed. The trust confirmed in March 2025 that Bitcoin and Bitcoin Cash had been distributed to 19,500 creditors. However, a significant portion of former users remains in limbo, their payouts stalled due to incomplete procedures or unforeseen complications during the complex recovery process.

Vast Reserves Remain, Fueling Frustration

The persistent delays are particularly galling given the sheer volume of Bitcoin still held by Mt. Gox. According to data from Arkham Intelligence, the defunct exchange's wallet still contains a substantial 34,689 BTC, a sum currently valued at around $4 billion. This substantial reserve, coupled with the repeated postponements, undoubtedly amplifies the frustration and anxiety among those who lost their digital fortunes in the infamous 2014 hack.

The Shadow of the Great Bitcoin Heist

Mt. Gox, a Tokyo-based exchange established in 2010, was once the undisputed leader in Bitcoin trading. Its meteoric rise was tragically cut short in 2014 when a devastating security breach resulted in the loss of an estimated 850,000 BTC. At the time, this represented a colossal sum, approximately $473 million, and a significant chunk – roughly 7% – of all Bitcoin in circulation. While a portion of the stolen funds, around 200,000 BTC, was later recovered from an old wallet, reducing the total stolen to approximately 650,000 BTC, the damage was irreparable. The hack triggered a halt in withdrawals and ultimately led to the exchange filing for bankruptcy, casting a long shadow over the nascent cryptocurrency industry.

A Troubled Legacy and Lingering Questions

The aftermath of the Mt. Gox collapse has been fraught with legal battles and protracted recovery efforts. Mark Karpelès, the former CEO of Mt. Gox, faced legal repercussions, including an arrest in Japan in 2015. He was subsequently found guilty in 2019 of data manipulation amounting to $33.5 million, receiving a suspended prison sentence. The plan to compensate creditors involves distributing recovered assets, including 142,000 BTC, 143,000 Bitcoin Cash, and fiat currency equivalent to approximately 69 billion Japanese Yen ($510 million). Reports from mid-2024 indicated that some creditors were receiving payouts through established exchanges like Kraken and Bitstamp, offering a glimmer of hope amidst the prolonged uncertainty. Yet, for many, the wait continues, a stark reminder of the perils and protracted recovery that can follow the largest hack in cryptocurrency history.

"As it is desirable to effectuate the repayment to the Rehabilitation Claimants as reasonably as possible, the Rehabilitation Trustee, with the permission of the court, has changed the repayment deadline from October 31, 2025, to October 31, 2026."