Mt. Gox's Final Bitcoin Repayment Deadline: Will Tokyo Whale Sell Again?

Mt. Gox, a defunct Tokyo-based cryptocurrency exchange, has around 34,689 Bitcoin ahead of its Oct. 31 repayment deadline. The exchange lost 650,000 BTC in thefts but found 200,000 BTC in an old-format wallet. The trustee, Nobuaki Kobayashi, sold Bitcoin to fund fiat repayments, earning the nickname "Tokyo Whale." Kobayashi's sales dumped Bitcoin in 2017-2018, and his actions drew criticism from market observers.

Mt. Gox, the once-renowned Tokyo-based cryptocurrency exchange, is nearing a significant milestone in its long journey through Bitcoin history. With around 34,689 Bitcoin (BTC) remaining ahead of its Oct. 31 repayment deadline, the exchange is preparing to distribute the last of its cryptocurrency holdings to creditors.

The Mt. Gox saga began in 2011 when the exchange lost approximately 650,000 BTC in a series of thefts that went undetected until its 2014 collapse. However, in 2015, around 200,000 BTC was found in an old-format wallet, providing a foundation for creditor repayments overseen by court-appointed trustee Nobuaki Kobayashi. Kobayashi, who earned the nickname "Tokyo Whale" for his significant role in selling Mt. Gox Bitcoin to fund fiat repayments, has been instrumental in the repayment process.

In 2017 and 2018, Kobayashi's sales of Mt. Gox Bitcoin had a notable impact on the market. Between September 2017 and March 2018, Kobayashi sold 35,841 BTC for 38 billion Japanese yen (around $360 million at the time), reducing Mt. Gox's holdings to around 166,000 BTC. This sale coincided with Bitcoin's decline to around $6,000, marking a significant drop from its December 2017 peak of nearly $20,000. While Kobayashi denied that his sales deepened the decline, market observers criticized his actions.

Following the ICO crash of early 2018, Kobayashi continued to sell Mt. Gox's Bitcoin, reducing the exchange's holdings to 141,686 BTC by May 2018. This period marked the end of Kobayashi's major sales, as the Tokyo District Court halted the bankruptcy and opened civil rehabilitation, appointing Kobayashi as rehabilitation trustee. In civil rehabilitation, Bitcoin claims are not liquidated, and repayment is set by a court-approved plan that allows for distributions in BTC or Bitcoin Cash (BCH) rather than cash.

In mid-2024, Mt. Gox wallets began moving Bitcoin as the exchange prepared for creditor repayments under the civil rehabilitation plan. Markets initially feared that recipients would immediately sell, but when repayments began, there was "no significant spike" in trading volume, according to Cointelegraph. By Aug. 1, Mt. Gox's holdings had fallen by nearly 100,000 BTC, leaving around 46,000 BTC still under the trustee's control.

The repayment deadline was extended to Oct. 31, 2025, due to incomplete procedures or processing issues. As of the current date, Mt. Gox wallets still hold about 34,689 BTC worth roughly $3.9 billion, awaiting distribution . In March 2025, the exchange began moving assets between its wallets, a likely step in preparing for further repayments ahead of the Halloween deadline.

The Mt. Gox saga serves as a reminder of the complexities and challenges faced by cryptocurrency exchanges and their creditors. As the repayment process continues, market observers will closely monitor the impact of these distributions on Bitcoin's price and overall market dynamics.

References
The ghost of Mt. Gox will stop haunting Bitcoin this Halloween — Cointelegraph: https://cointelegraph.com/news/ghost-mt-gox-stop-haunting-bitcoin-halloween?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed