On Tuesday, Kraken CEO Dave Ripley announced the successful distribution of Bitcoin and Bitcoin Cash to customers affected by the Mt. Gox hack that led to the Japanese exchange’s collapse nearly a decade ago. Ripley 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.”
Creditors of Mt. Gox are reportedly awaiting more than $7 billion in Bitcoin, Bitcoin Cash, and fiat currency from various entities responsible for mediating the fund distribution process. While Kraken did not specify the total amount returned to Mt. Gox customers, the exchange’s involvement marks a significant step toward resolving one of the cryptocurrency industry’s most prolonged sagas. Kraken was among five exchanges selected to assist in returning funds to some of the 127,000 creditors affected by the 2014 collapse.
The other exchanges involved in this effort include Bitstamp, SBI VC Trade, Bitbank, and Coincheck. The exact timeline for when creditors will receive their funds from these exchanges remains unclear, as none have provided comments on the matter.
Blockchain analytics firm Arkham Intelligence reported on Tuesday that the Mt. Gox estate had started transferring $2.85 billion worth of Bitcoin to new wallets. Of this amount, $340 million was transferred to four separate addresses owned by Bitstamp. Arkham also noted that the Mt. Gox estate still holds approximately 85,234 BTC, valued at $5.7 billion.
Mt. Gox was once the largest cryptocurrency exchange in the world, handling over 70% of all Bitcoin transactions globally. However, the exchange filed for bankruptcy in February 2014 after hackers stole 850,000 Bitcoin, which would be worth $56 billion at current market rates.
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