Oldest crypto exchange under Chapter 15 bankruptcy delays payouts again

Mt. Gox, one of the first crypto trading exchanges to go bankrupt, has once again delayed creditor repayments, and this time it has postponed them by a year.

Related: What is Crypto? Cryptocurrency explained

On Oct. 27, the Rehabilitation Trustee announced that it has, with the court's permission, changed the deadline for the repayments from Oct. 31, 2025, to Oct. 31, 2026.

The trustee said though it has completed most of the base, early lump-sum, and intermediate repayments, many creditors still haven't received the repayments because of non-completion of necessary procedures and other reasons.

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Understanding Mt. Gox crisis

Jed McCaleb, who later co-founded Ripple, relaunched "Magic: The Gathering Online Exchange" as Mt. Gox, a crypto trading exchange, in July 2010. McCaleb sold the website to Mark Karpelès, a Japan-based entrepreneur, in March 2011.

By late 2013 and early 2014, Mt. Gox was the leading crypto exchange dealing with Bitcoin (BTC) transactions. It accounted for as much as 70% of global Bitcoin trading volume at that time.

In a shocking announcement in February 2014, the exchange reported a loss of nearly 850,000 BTC to an exploit and suspended all withdrawals. Later that month, Mt. Gox took down the website, put an end to all trading activities, and filed for bankruptcy in Japan.

In March 2014, Mt. Gox filed for Chapter 15 bankruptcy in the U.S. Chapter 15 is designed for cross-border insolvency cases, allowing foreign companies undergoing bankruptcy proceedings abroad to protect their U.S.-based assets.

The same month, it disclosed finding 200,000 BTC in an old wallet, lowering the loss to 650,000 BTC.Mark Karpeles, CEO of UNGOX and former chief executive of now-defunct Mt. Gox, attends a press conference at the Foreign Correspondents' Club of Japan in Tokyo on April 11, 2022.

As far as legal proceedings are concerned, Japanese authorities arrested Karpelès in August 2015 for alleged account manipulation. In March 2019, a court found him guilty of one count of data manipulation and sentenced him to 30 months, suspended for four years. In short, he didn't have to spend any time in jail.

As per Arkham Intelligence, Mt. Gox held 34,689 BTC worth $4 billion at the time of writing.

This story was originally reported by TheStreet on Oct 27, 2025, where it first appeared in the Bankruptcy News & Analysis section. Add TheStreet as a Preferred Source by clicking here.

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