The defunct Bitcoin exchange Mt. Gox has officially delayed its creditor repayment deadline by one year, pushing it from October 31, 2025, to October 31, 2026.
This marks the third postponement in the ongoing bankruptcy proceedings, which stem from the infamous 2014 hack that resulted in the loss of approximately 850,000 BTC worth billions today. The announcement was made on October 27, 2025, by rehabilitation trustee Nobuaki Kobayashi, with approval from the Tokyo District Court.
The extension aims to ensure repayments are made “to the extent reasonably practicable” for all eligible creditors, addressing ongoing challenges such as: Incomplete paperwork and verification: Thousands of claims remain unresolved due to missing documentation, KYC issues, or technical glitches in the process.
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The trustee needs additional time to verify claims, test systems, and maintain fairness across creditor groups. Rushing could exclude some creditors, so the court prioritized comprehensive coverage over speed.
This isn’t the first hiccup—original deadlines were set for October 31, 2023, then extended to 2024 and now 2025—highlighting the complexities of Japan’s strict bankruptcy laws in a crypto context.
Despite the delays, significant headway has been made: Creditors repaid: Approximately 19,500 out of ~24,000 have received distributions in BTC and BCH (Bitcoin Cash).
Over 107,000 BTC valued at ~$12.3 billion at current prices has been returned since payouts began in 2024.
Mt. Gox still holds ~34,689 BTC, worth roughly $4 billion based on BTC at ~$115,000 as of late October 2025. These funds are secured in trustee-controlled wallets to avoid market dumps. The delay is largely viewed as bullish in the short term.
It removes a potential overhang of ~0.2% of BTC’s total supply from hitting exchanges in 2025, easing sell pressure and potentially stabilizing prices above $114,000 through the year. However, the funds will still enter circulation eventually—likely in 2026, coinciding with post-halving dynamics.
Early recipients paid when BTC was ~$60,000 have seen ~90% gains, while late claimants might benefit if prices rise further. For creditors: Frustration is mounting after 11 years of waiting, with some calling victims the “diamond hands of the decade.”
If you’re an affected creditor, check the official Mt. Gox rehabilitation portal immediately to submit any outstanding docs—there’s now more time, but delays compound losses from opportunity costs.
This saga underscores crypto’s maturation: Mt. Gox once handled 70% of global BTC volume, but its collapse exposed early risks. Recent moves, like Strive Asset Management’s plan to buy $8B in claims, show institutional interest in wrapping up loose ends.
Tax Implications of Mt. Gox Repayments
The tax treatment of Mt. Gox repayments—primarily in Bitcoin (BTC), Bitcoin Cash (BCH), and cash—varies significantly by jurisdiction, your original cost basis, whether you’ve previously claimed a loss on the 2014 hack, and the specific repayment type like the early Lump-Sum Repayment or Final Repayment.
Repayments are not considered a return of your original BTC due to Japanese civil rehabilitation laws treating them as claims against the estate, not segregated assets, but rather a distribution in satisfaction of those claims.
This often triggers a capital gain or loss calculation based on the fair market value (FMV) at receipt versus your adjusted cost basis (ACB) in the claim. Generally treated as a disposition of your claim, with FMV at receipt as proceeds. No immediate tax on receipt if it’s a return of capital up to basis, but excess is a gain.
Cash portion: Often ordinary income or capital gain, depending on if it includes interest/penalties. Subsequent sale triggers another capital gain/loss using the FMV at receipt as your new basis.
If you deducted the original BTC as a theft/worthless loss (e.g., pre-2018), repayments may require recapturing that as income. Creditors typically receive 20-21% of claims valued at 2014 prices, but current BTC values $115,000 as of Oct 28, 2025 mean many will face gains.
With the deadline now Oct 31, 2026, track your 2025/2026 tax year. Early recipients (2024) report gains then; others later. Tax drag may reduce immediate selling (e.g., HODL for LTCG rates or use loans against BTC). Some creditors sell claims to funds (taxable event).