Kraken, a prominent crypto exchange, has announced that it has received funds from the Mt. Gox Trustees. Within the next seven to 14 days, it will start distributing Bitcoin (BTC) and Bitcoin Cash (BCH) to users affected by the Mt. Gox collapse.
For those affected by the Mt. Gox debacle, this distribution represents a critical resolution point, potentially ending a decade-long ordeal of recovery and compensation.
Bitcoin Retraces From $65,000
The exchange plans to distribute these funds swiftly, ensuring that affected users receive their allocated amounts promptly.
“The amount you will receive has been determined by the Trustee, and we will distribute according to their instructions,” Kraken stated in an email to affected parties.
Read more: Top Crypto Bankruptcies: What You Need To Know
This initiative marks a major step in resolving the financial disputes that have lingered since the notorious Mt. Gox incident. In 2014, Mt. Gox, once a leading Bitcoin exchange, filed for bankruptcy following a security breach that led to a loss of approximately 850,000 BTC.
The aftermath has involved complex bankruptcy proceedings, where creditors are required to meet several conditions before they can receive repayment. These conditions include verifying account authenticity and finalizing agreements with crypto exchanges.
The Mt. Gox Trustees started disbursing Bitcoin and Bitcoin Cash on July 5. Furthermore, in today’s market activity, Mt. Gox transferred 91,755 BTC, valued at $5.8 billion, into new addresses. This movement includes large transactions such as 48,641 BTC to a new crypto wallet – 3JQie and 42,587 BTC to wallet 18vjn.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
This development has impacted Bitcoin’s price. Earlier today, Bitcoin briefly hit $65,000 before retracing to around $63,405 at the time of writing. Despite the retracement, BTC is still up by 1.4% in the past 24 hours.
“Mt Gox has re-ignited the Bitcoin selloff scare in the market, a trend that might impact traders’ sentiment more than Germany’s selloff. The repayment is imminent, and the expectation is that beneficiaries will sell their coins as all are in profit at the moment. The market response, which saw BTC drop from $65k to $63K, might prove more grievous if no complementary positive news hits the market soon,” Chimp Exchange Founder Akshay Nassa told BeInCrypto.
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