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Breaking Mt. Gox Creditors to Receive Bitcoin: Kraken Will Start Distribution This Month

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Updated by Daria Krasnova
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In Brief

  • Kraken to distribute BTC and BCH to Mt. Gox creditors within 7-14 days after receiving funds from Trustees.
  • Distribution aims to resolve decade-long recovery and compensation issues from the Mt. Gox collapse.
  • Mt. Gox transferred 91,755 BTC, affecting Bitcoin’s price, which retraced from $65,000 to around $63,405.
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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

Bitcoin Price Performance
Bitcoin Price Performance. Source: BeInCrypto

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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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Harsh Notariya
Harsh Notariya is an Editorial Standards Lead at BeInCrypto, who also writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created...
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