Renowned cryptocurrency exchange platform Kraken has confirmed the receipt of over 48,000 in Bitcoin (BTC) and Bitcoin cash (BCH) from the Mt. Gox Trustee. This development is a significant step towards resolving one of the most notorious incidents in cryptocurrency history, where the collapse of Mt. Gox in 2014 led to the loss of approximately 850,000 bitcoins.
According to a post on X, the receipt of funds by Kraken signals progress in the distribution of assets to creditors who have been waiting for years for reimbursement.
Kraken Says Sucessfully Received Funds From Mt. Gox Trustee, Will Work to Distribute Within 7 to 14 days: Email Sent to Affected Users pic.twitter.com/OnCp8a7siM
— Tree News (@News_Of_Alpha) July 16, 2024
Kraken in an email, announced that it will work diligently to distribute the funds within the next 7 to 14 days. The exchange also said in its email that the amount to be distributed to affected users will be determined by the Trustee.
Beyond Kraken, $9.8B BTC Moved Out of Mt. Gox
The timely distribution of funds comes months after $9.8 billion worth of BTC was moved into a single wallet from multiple wallets linked to the defunct Japanese Bitcoin exchange. Mark Karpeles, the former CEO of Mt. Gox addressed the situation, stating that the consolidation of Bitcoin is part of the preparation for the upcoming distribution to creditors.
Although the exact timing of the payout remains uncertain, the progress made thus far provides renewed hope for creditors who have endured years of uncertainty and frustration. The payment to the creditors will be made in multiple installments. According to a user in December 2023, only part of his 0.125 BTC was repaid. The user received 30,283 yen (worth $200 at the current exchange rate leaving a balance of about $748).
The Fall of Mt.Gox
Founded in 2010 by Jed McCaleb, Mt. Gox was once the world’s largest Bitcoin exchange, handling 70% of global BTC transactions at its peak. McCaleb sold the exchange to Mark Karpeles in 2011. However, in early 2014, the exchange was hacked, resulting in the loss of a vast amount of bitcoins.
After filing for bankruptcy in February 2014, with liabilities far exceeding its assets, the case transitioned to civil rehabilitation in 2018. In 2019, Karpeles was convicted of falsifying financial records.
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