In a significant development for the cryptocurrency community, Kraken has confirmed the receipt of funds from the Mt. Gox Trustee. This marks a pivotal moment in the long-awaited restitution process for creditors affected by the infamous Mt. Gox exchange hack.
Kraken has announced that it will begin distributing the funds received within 7 to 14 days.
Kraken Begins Distribution of Bitcoin and Bitcoin Cash Funds from Mt. Gox Trustee
Kraken, a major cryptocurrency exchange, has successfully received Bitcoin (BTC) and Bitcoin Cash (BCH) funds from the Mt. Gox Trustee, marking a significant milestone in the long-awaited distribution process to creditors.
According to emails sent to affected users, Kraken confirmed the commencement of the distribution process. The email stated, “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee.”
The exchange futher noted that the disbursement will take 7–14 days for funds to be credited to user accounts. “The amount you will receive has been determined by the Trustee, and we will distribute according to their instructions.”
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
Mt. Gox, once the world’s largest Bitcoin exchange, filed for bankruptcy in 2014 after losing 850,000 BTC (worth around $450 million at the time) in a hack.
The exchange’s collapse profoundly impacted the cryptocurrency market, leading to increased scrutiny and calls for stricter security measures within the industry.
The successful reception of funds by Kraken marks a crucial step towards resolving one of the most significant events in cryptocurrency history, providing long-awaited relief to Mt. Gox creditors and underscoring the importance of robust security practices in the digital asset space.
Kraken Initiates Distribution as Market Reacts to Large Bitcoin Transfers
This development follows Mt. Gox’s recent transfer of $2.7 billion in Bitcoin to an unknown wallet, as tracked by Arkham Intelligence.
This movement, part of a creditor reimbursement plan, involved a significant transfer of 44,527 BTC ($2.84 billion) after an initial test transfer of 0.021 BTC.
On-chain sleuth Lookonchain suggests that this transfer indicates Mt. Gox is preparing for repayment. The large movement of Bitcoin caused a 3% drop in its price, briefly falling from $65,000 to $63,000.
Previously, in May, Mt. Gox moved over 140,000 BTC ($9 billion) from cold wallets in its first on-chain movements in over five years.
The reimbursement process for Mt. Gox creditors has been long and complex, with legal and logistical challenges delaying the distribution of funds.
The Trustee’s initiation of the payment process has had a noticeable impact on the crypto market. The announcement of Kraken receiving and preparing to distribute the funds is critical to finalizing this process.
The anticipation of significant Bitcoin and Bitcoin Cash movements due to the Mt. Gox repayments, coupled with other recent market activities such as the German government’s Bitcoin sale, has created a ripple effect in the cryptocurrency market.
Market participants are closely monitoring these developments to gauge potential price fluctuations and market dynamics.
As Mt. Gox once handled over 70% of all Bitcoin transactions, the recent transfers raise concerns about potential mass selling by creditors who have waited nearly a decade for reimbursement, especially now that the market is just recovering from the German government sell-off.
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