Kraken to Begin Distributing Mt. Gox Compensation Funds Soon: $3.1B Worth Bitcoin Transfer Noted
Kraken has announced the receipt of funds from the Mt. Gox Rehabilitation Trustees on July 16th. This marks a significant step towards compensating those impacted by the historic collapse of the Mt. Gox exchange a decade ago.
In an email to the affected parties, the exchange said it plans to begin distributing Bitcoin (BTC) and Bitcoin Cash (BCH) to affected users within the next seven to 14 days.
Distribution Plan for Mt. Gox Funds
According to Krakens email, the amount received has been determined by the Trustee, and the exchange will distribute the funds according to their instructions.
We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee. While we will work to distribute funds as quickly as possible, please anticipate 7-14 days for funds to be credited to your account. The amount you will receive has been determined by the Trustee, and we will distribute according to their instructions.
Krakens announcement follows the actions of two Japanese exchanges, Bitbank and SBI VC Trade, which received and quickly distributed their allocated funds within hours.
In an update on Tuesday, prominent blockchain intelligence company Arkham Intelligence revealed that the address 3JQieEzccKjFS34oW8KZSGBDndiH1YyFrE is most likely associated with Kraken, one of the exchanges involved in repaying Mt. Gox creditors.
This address received a transfer of 48,641 BTC, worth around $3.1 billion, from Mt. Gox earlier today. Notably, this massive sum remains unspent till the time of writing. Additionally, the Mt. Gox trustee still holds another portion of the BTC transferred this morning, amounting to 43,114 BTC, valued at around $2.74 billion, in several addresses.
Rehabilitation Trustee Nobuaki Kobayashi on Mt. Gox Repayments
In a separate notice issued on the same day, Rehabilitation Trustee Nobuaki Kobayashi reported significant progress in the repayment process for Mt. Gox creditors.
Following an initial round of repayments on July 5, 2024, the Trustee continued on July 16, 2024, by distributing Bitcoin and Bitcoin Cash to some rehabilitation creditors through designated crypto exchanges, aligning with its rehabilitation plan. Kobayashi further revealed that over 13,000 creditors have received their allocated funds so far.
He further went on to add that several criteria must be met before further repayments are made, which include:
- verification of the validity of registered accounts and related matters;
- acceptance of the intention to subscribe to the Agency Receipt Agreement by the Designated Cryptocurrency Exchanges;
- finalization of discussions between the Rehabilitation Trustee and these exchanges regarding the repayment process;
- assurance that repayments can be executed safely and securely.
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Text source: CryptoPotato
