TLDR
A
decade-long
cryptocurrency
saga
is
approaching
its
final
chapter
as
Kraken,
a
major
crypto
exchange, has
initiated
the
distribution
of
Bitcoin
and
Bitcoin
Cash
to
customers
affected
by
the
infamous
Mt.
Gox
hack.
This
development
marks
a
significant
milestone
in
the
resolution
of
one
of
the
most
notorious
incidents
in
cryptocurrency
history.
Mt.
Gox,
once
the
dominant
player
in
the
crypto
space
handling
over
70%
of
all
Bitcoin
transactions
globally,
filed
for
bankruptcy
in
February
2014
following
a
devastating
hack.
The
breach
resulted
in
the
theft
of
850,000
Bitcoin,
valued
at
an
astounding
$56
billion
based
on
current
market
rates.
This
event
sent
shockwaves
through
the
nascent
cryptocurrency
industry
and
left
thousands
of
investors
in
limbo.
In
the
years
following
the
hack,
efforts
to
compensate
affected
users
have
been
ongoing.
A
rehabilitation
proposal
approved
in
2021
promised
to
reimburse
about
90%
of
the
assets
owed
to
affected
customers.
As
part
of
this
process,
Kraken
was
selected
by
the
Mt.
Gox
Trustee
to
facilitate
the
investigation
and
return
of
client
funds.
UPDATE:
MT.
GOX
MOVING
$2.85B
BTCMt.
Gox
moved
a
total
of
$2.85B
BTC
to
new
wallets
this
morning
in
order
to
distribute
5110
BTC
($340.1M)
BTC
to
4
separate
Bitstamp
addresses.Bitstamp
is
one
of
the
5
exchanges
that
the
Mt.
Gox
Trustee
is
working
with
to
return
funds
to
Mt.…pic.twitter.com/KsKuxMpvZS
—
Arkham
(@ArkhamIntel)July
23,
2024
On
July
16,
2024,
Kraken
received
48,641
BTC,
valued
at
over
$3
billion,
from
the
Mt.
Gox
Rehabilitation
Trustee.
This
transfer
was
intended
to
be
distributed
to
creditors
within
one
to
two
weeks.
True
to
this
timeline,
Kraken
announced
on
July
24
that
it
had
“successfully
distributed”
Bitcoin
and
Bitcoin
Cash
to
Mt.
Gox
customers.
Dave
Ripley,
CEO
of
Kraken,
stated,
“It’s
been
nearly
a
decade
since
Kraken
was
selected
by
the
Trustee
to
facilitate
the
investigation
and
return
of
client
funds.
It
was
our
privilege
and
it
was
our
duty.”
While
the
exact
amount
distributed
by
Kraken
has
not
been
disclosed,
this
event
represents
a
significant
step
forward
in
the
reimbursement
process.
Creditors
are
reportedly
awaiting
more
than
$7
billion
worth
of
Bitcoin,
Bitcoin
Cash,
and
cash
distributions
from
various
entities
involved
in
mediating
the
process.
Kraken
is
not
alone
in
this
endeavor.
Four
other
cryptocurrency
exchanges
–
Bitstamp,
SBI
VC
Trade,
Bitbank,
and
Coincheck
–
have
also
been
tasked
with
returning
funds
to
some
of
the
127,000
creditors
affected
by
the
2014
collapse.
The
timing
of
distributions
from
these
other
exchanges
remains
unclear.
Recent
blockchain
data
has
shown
significant
movement
of
Mt.
Gox-related
funds.
Blockchain
analytics
firm
Arkham
Intelligence
reported
that
Mt.
Gox
had
begun
moving
a
total
of
$2.85
billion
worth
of
Bitcoin
to
new
wallets,
with
$340
million
of
that
heading
to
four
separate
addresses
owned
by
Bitstamp.
Despite
these
positive
developments,
it’s
worth
noting
that
the
recovery
process
has
been
far
from
complete.
Local
Japanese
law
enforcement
managed
to
retrieve
just
140,000
of
the
850,000
digital
assets
stolen
to
repay
creditors.
The
Mt.
Gox
estate
still
holds
approximately
85,234
BTC
valued
at
$5.7
billion,
according
to
Arkham.
As
this
long-standing
case
inches
towards
resolution,
it
serves
as
a
reminder
of
the
early
challenges
faced
by
the
cryptocurrency
industry
and
the
ongoing
efforts
to
address
them.
The
distribution
of
funds
to
Mt.
Gox
creditors
represents
a
significant
step
towards
closure
for
many
long-waiting
investors
in
the
cryptocurrency
space.
Go to Source
Author: Oliver Dale
