Kraken announced that it has successfully distributed Bitcoin and Bitcoin Cash to customers affected by the infamous hack that led to the downfall of the Japanese exchange Mt. Gox a decade ago. Dave Ripley, CEO of Kraken, expressed pride in fulfilling the company's role in the investigation and return of client funds. While the exact amount returned by Kraken was not disclosed, this action marks a significant milestone in resolving the long-standing Mt. Gox saga.
Efforts to Compensate Mt. Gox Creditors
In efforts to compensate Mt. Gox users, Kraken was one of five exchanges tasked with returning customer funds to approximately 127,000 creditors impacted by the 2014 collapse. The total claims amount to more than $7 billion worth of Bitcoin, Bitcoin Cash, and cash distributions. Other designated exchanges include Bitstamp, SBI VC Trade, Bitbank, and Coincheck, though the exact timing of their fund distributions remains unclear. A notable blockchain analytics firm reported that Mt. Gox had recently moved $2.85 billion worth of Bitcoin to new wallets, with a portion directed to Bitstamp.
Conclusion: A Step Towards Resolution
Despite the progress, the Mt. Gox estate still holds approximately 85,234 BTC, valued at $5.7 billion. Local Japanese law enforcement managed to retrieve only 140,000 of the 850,000 stolen Bitcoin. A rehabilitation proposal approved in 2021 aims to remunerate about 90% of the assets owed to affected customers. Mt. Gox, once the largest crypto exchange handling over 70% of all Bitcoin transactions globally, filed for bankruptcy in 2014 following the massive hack. The recent distributions by Kraken signify a crucial step towards concluding one of the most prolonged and complex cases in cryptocurrency history.
