Kraken Receives 48,641 BTC from Mt. Gox Trustee, Distributions to Begin Soon

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Kraken has confirmed the receipt of funds from the Mt. Gox Rehabilitation Trustees as of July 16th.
This development is crucial for compensating those affected by the Mt. Gox exchange collapse nearly a decade ago.
Kraken plans to start the distribution of Bitcoin (BTC) and Bitcoin Cash (BCH) to affected users within the next 7-14 days.

Kraken initiates the distribution of Mt. Gox funds, marking a major step in compensating affected users from the historic cryptocurrency exchange collapse.

Kraken Begins Distribution of Mt. Gox Funds

Kraken has officially received a transfer of Bitcoin (BTC) and Bitcoin Cash (BCH) from the Mt. Gox Trustee. The exchange has outlined plans to begin disbursing these funds to the impacted users within the next 7-14 days. The amount each user will receive has been predetermined by the Trustee, and Kraken will follow these instructions accordingly.

Response from Other Cryptocurrency Exchanges

Two Japanese exchanges, Bitbank and SBI VC Trade, have already received and distributed their allocated funds within hours. This swift action ensures that the process of rehabilitation for affected parties progresses efficiently.

Significant Transaction on Blockchain

Blockchain intelligence firm Arkham Intelligence highlighted a massive transaction to an address believed to be associated with Kraken. The address received a transfer of 48,641 BTC, valued at approximately $3.1 billion, from Mt. Gox. This sum remains unspent as of now. Additionally, the Mt. Gox trustee holds another 43,114 BTC, worth around $2.74 billion, across several addresses.

Progress Report from Rehabilitation Trustee Nobuaki Kobayashi

Rehabilitation Trustee Nobuaki Kobayashi disclosed significant advancements in the reimbursement process for Mt. Gox creditors. Following a round of repayments on July 5, 2024, a subsequent wave occurred on July 16, 2024, distributing Bitcoin and Bitcoin Cash to select creditors via designated crypto exchanges. So far, over 13,000 creditors have received their allocated funds.

Conditions for Further Repayments

Before further repayments can proceed, several conditions must be met:

Verification of the validity of registered accounts and associated details.
Consent from designated cryptocurrency exchanges to participate in the Agency Receipt Agreement.
Finalization of discussions between the Rehabilitation Trustee and the exchanges regarding the repayment framework.
Assurance that repayments can be conducted securely.

Conclusion

Kraken’s initiation of the distribution process represents a pivotal milestone in the lengthy journey to reimburse those affected by Mt. Gox’s downfall. The next few weeks will be critical in determining the pace and efficiency of these repayments. Stakeholders should stay informed about further developments, which could significantly impact the broader crypto market dynamics.