Kraken To Distribute Mt.Gox Funds
- Kraken will start to distribute Bitcoin (BTC) and Bitcoin Cash (BCH) funds from the Mt. Gox Trustee within two weeks, marking a significant step for creditors affected by the 2014 hack.
Kraken has received funds from the Mt. Gox Trustee and will start distributing them to creditors within 7 to 14 days. This is a crucial moment for those affected by the notorious Mt. Gox hack nearly ten years ago.
Kraken has confirmed receipt of Bitcoin (BTC) and Bitcoin Cash (BCH) from Mt. Gox Trustee. Affected users received emails stating that the distribution process is underway and will take about 7–14 days.
The amounts distributed will follow the Trustee’s instructions. Mt. Gox, once the largest Bitcoin exchange, went bankrupt in 2014 after losing 850,000 BTC in a hack, causing a major impact on the cryptocurrency market and pushing for stronger security measures.
The receipt of funds by Kraken marks a significant step in resolving one of the biggest events in crypto history. It provides long-awaited relief to Mt. Gox creditors and highlights the importance of secure practices in digital assets.
This move follows Mt. Gox’s recent transfer of $2.7 billion in Bitcoin to an unknown wallet, as tracked by Arkham Intelligence.
This transfer is part of the creditor reimbursement plan and involves 44,527 BTC. An initial test transfer of 0.021 BTC preceded it. On-chain analyst Lookonchain suggests this indicates Mt.Gox is preparing for repayment.
Earlier in May, Mt. Gox moved over 140,000 BTC from cold wallets, their first on-chain movement in over five years.
The reimbursement process has been complex, with legal and logistical challenges delaying it. The Trustee’s initiation of the payment process is crucial for concluding this long-standing issue.
The anticipated large movements of Bitcoin and Bitcoin Cash due to the Mt. Gox repayments, combined with recent activities like the German government’s Bitcoin sale, have impacted the market.
Market participants are watching these developments closely to understand potential price changes. Since Mt. Gox once handled over 70% of all Bitcoin transactions, the recent transfers raise concerns about potential mass selling by creditors.
Kraken’s receipt and planned distribution of funds mark a significant milestone in resolving the Mt. Gox hack aftermath. As the distribution process continues, the market will closely watch for further impacts on Bitcoin and Bitcoin Cash prices.
This situation underscores the need for robust security and ongoing improvements in the digital asset industry to prevent similar incidents in the future.
