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After a decade, the creditors of the Mt. Gox hack, which quickly depleted many investors’ wealth, received significant relief. Dave Ripley, CEO of Kraken, announced that Kraken has successfully distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate to creditors. He highlighted Kraken’s decade-long role in facilitating the investigation and return of client funds, emphasizing it as both a privilege and a duty.
1/ @krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.
— Dave Ripley (@DavidLRipley) July 23, 2024
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. pic.twitter.com/ptKexzN4gm
Overcoming the Roadblocks
Ripley noted that legal issues delayed payments but praised the Trustee for keeping most of the Bitcoin safe, preserving its value. This effort is highly appreciated by creditors.
As Kraken’s 13th anniversary nears, Ripley reflected on the company’s mission and responsibility to clients, honoring co-founder Jesse Powell for his role in shaping the crypto industry. These milestones highlight Kraken’s commitment to its clients and the crypto community.
End of Investors woes!
The collapse of Mt. Gox in 2014 marked a significant event in cryptocurrency history, as the then-largest Bitcoin exchange lost 850,000 Bitcoin to hackers. Today, this stolen Bitcoin would be worth about $56 billion. Kraken, along with four other exchanges—Bitstamp, SBI VC Trade, Bitbank, and Coincheck—was selected to aid in the return of funds to approximately 127,000 impacted customers. The total owed to these customers is estimated to exceed $7 billion, covering various forms of cryptocurrency and cash.
Progress and Future of the Rehabilitation Plan
Recent developments show significant progress in the Mt. Gox rehabilitation plan, approved in 2021, which aims to repay affected customers about 90% of their owed amounts.
Moreover, Blockchain analysis firm Arkham Intelligence reported that Mt. Gox has begun moving $2.85 billion worth of Bitcoin to new digital wallets, with $340 million already sent to addresses linked to Bitstamp. The Mt. Gox estate still holds about 85,234 Bitcoin, valued at approximately $5.7 billion. This event is a crucial step towards resolving the long-standing issues faced by former Mt. Gox customers.
Impact on the Crypto Market
The imminent distribution of nearly $9 billion worth of BTC and BCH has been a top source of concern for digital asset investors. Many are pondering how much of those assets creditors will sell on the open market to capitalize on the massive price appreciation over the past ten years. Historically, crypto prices have often reacted negatively to news about Mt. Gox-related blockchain transfers.
Earlier today, Bitcoin slipped to nearly $66,000 after Mt. Gox wallets moved $2.8 billion worth of assets, including $130 million in BTC to Bitstamp, foreshadowing distribution to creditors.