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Kraken Completes Distribution of Bitcoin and Bitcoin Cash to Mt. Gox Creditors
Kraken Completes Distribution of Bitcoin and Bitcoin Cash to Mt. Gox Creditors
Kraken CEO Dave Ripley on Tuesday announcement According to Ripley, Kraken has “successfully distributed” Bitcoin and Bitcoin Cash to customers affected by the hack that led to the collapse of Japanese stock exchange Mt. Gox nearly a decade ago. “It’s been almost a decade since Kraken was selected by the trustee to facilitate the investigation and return of customer funds. It was our privilege and our duty.”
Mt. Gox creditors are reportedly waiting for more than $7 billion in Bitcoin, Bitcoin Cash, and fiat currency from various entities that are mediating the fund distribution process. While Kraken did not specify the total amount that will be returned to Mt. Gox customers, the exchange’s involvement marks a significant step toward resolving one of the cryptocurrency industry’s longest-running sagas. Kraken was among five exchanges selected to help return funds to some of the 127,000 creditors affected by the 2014 collapse.
Other exchanges involved in the effort include Bitstamp, SBI VC Trade, Bitbank, and Coincheck. The exact timeline for when these exchanges’ creditors will receive the funds remains unclear, as none have provided any comment on the matter.
Arkham Intelligence, a blockchain analytics firm, reported Tuesday that the Mt. Gox estate has begun transferring $2.85 billion worth of Bitcoin to new wallets. Of that amount, $340 million was transferred to four separate addresses owned by Bitstamp. Arkham also noted that the Mt. Gox estate still holds about 85,234 BTC, valued at $5.7 billion.
Mt. Gox was once the world’s largest cryptocurrency exchange, handling over 70% of all Bitcoin transactions globally. However, the exchange filed for bankruptcy in February 2014 after hackers stole 850,000 Bitcoins, which would be worth $56 billion at current market rates.