Kraken Receives BTC and BCH from Mt. Gox Trustee, Begins Distribution Process

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Crypto exchange Kraken has officially received a substantial transfer of Bitcoin (BTC) and Bitcoin Cash (BCH) from the Mt. Gox Rehabilitation Trustee.

The exchange confirmed this development in an email to clients, a screenshot of which was shared in the Mt. Gox creditors’ Telegram group.

Also read: How to Buy Bitcoin on eToro: A Step-by-Step Guide

Kraken stated, “We have successfully received creditor funds (BTC and BCH) from the Mt. Gox Trustee. While we will work to distribute funds as quickly as possible, please anticipate 7-14 days for funds to be credited to your account. The amount you will receive has been determined by the Trustee, and we will distribute according to their instructions.”

MT. Gox Wallets Transfer Bitcoin to Kraken

Earlier today, blockchain analytics platform Arkham reported that Mt. Gox wallets transferred approximately 48,641 BTC, valued at $3.1 billion, to an unlabeled address. Following Kraken’s announcement, Arkham identified the “3JQie” address as likely being associated with Kraken, noting that the funds currently remain unspent.

UPDATE ON MT GOX MOVEMENTS

We believe that 3JQieEzccKjFS34oW8KZSGBDndiH1YyFrE is most likely associated with Kraken, one of the exchanges involved in repaying Mt. Gox creditors.

This address received 48,641 BTC ($3.10B) from Mt. Gox this morning, which remains unspent.

The… https://t.co/FfFQcI9Xvr pic.twitter.com/4T3tuC3CSM
— Arkham (@ArkhamIntel) July 16, 2024

Nobuaki Kobayashi, the Mt. Gox Rehabilitation Trustee, also issued a notice detailing the latest developments.

“Following repayments on July 5, 2024, on July 16, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors through some of the Designated Cryptocurrency Exchanges etc. in accordance with the Rehabilitation Plan. As a result, the Rehabilitation Trustee has now made repayments in Bitcoin and Bitcoin Cash to over 13,000 rehabilitation creditors to date,” Kobayashi wrote. He also urged eligible creditors to be patient as the distribution process continues.

The ongoing Mt. Gox payouts have seen varied timelines across different exchanges. Japanese exchanges Bitbank and SBI VC Trade have already received and distributed their allocated funds, completing the process within hours, well ahead of their two-week deadlines.

Other firms involved in the creditor distributions, including BitGo, Bitstamp, and Kraken, are yet to receive their payments and have different payout deadlines extending up to 20, 60, and 90 days, respectively.

Background on the Defunct Exchange

Mt. Gox, founded in 2010, once held the title of the largest Bitcoin exchange in the world until it suffered a significant security breach in 2014, resulting in the loss of 850,000 bitcoins. In September 2023, the trustee of the defunct exchange announced a plan to reimburse creditors with 142,000 BTC (valued at $9 billion) and 143,000 BCH (valued at $55 million), along with fiat currency amounting to 69 billion Japanese yen ($436 million), with a new deadline set for October 2024.

As Kraken begins the process of distributing the received funds, the cryptocurrency community and Mt. Gox creditors are closely monitoring the developments, hopeful for the timely completion of the long-awaited reimbursements.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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