Crypto exchange Kraken confirms receiving creditors' funds from the Mt. Gox Rehabilitation Trustee

The distribution process to creditors will commence in the next 7 to 14 days.

Crypto exchange Kraken has confirmed receiving funds from the Mt. Gox Rehabilitation Trustee for the creditors of the now-defunct exchange. The exchange announced through an email that the distribution process to creditors will commence in the next 7 to 14 days.

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According to on-chain data from Arkham Intelligence, Mt. Gox transferred 48,641 bitcoins (around $3.1 billion) to an unknown address on Tuesday. The blockchain analytics firm believes the address belongs to Kraken Exchange.

After the exchange confirmed receiving creditors’ funds, Arkham linked the address “3JQie” to the exchange. The related transactions triggered a sell-off in the market, with Bitcoin shedding 3% to $63,000 from $65,000.

Mt. Gox filed for bankruptcy in early 2014 after losing 850,000 Bitcoins to a vulnerability in Bitcoin’s code. The hack is currently valued at more than $50 billion, three times the total value of the top ten bank heists of all time.

In 2023, authorities recovered 140,000 bitcoins (around $9 billion) and kicked off the reimbursement process for the exchange's creditors. On July 5, the defunct exchange announced that it had started the process of repaying creditors through pre-selected crypto exchanges following a rehabilitation plan. The allocation process will vary in timing from one exchange to another.

Mt. Gox reimburses creditors with Bitcoin and Bitcoin cash

Following the transfers to Kraken, Mt. Gox Trustee issued an official statement, noting that they have now repaid over 13,000 creditors of Mt. Gox.

“Following repayments on July 5, 2024, and July 16, 2024, the Rehabilitation Trustee made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors… the Rehabilitation Trustee has now made repayments in Bitcoin and Bitcoin Cash to over 13,000 rehabilitation creditors to date.”

–Nobuaki Kobayashi

On July 16, the Rehabilitation Trustee’s attorney-at-law, Nobuaki Kobayashi, announced that the trustee had disbursed part of the settlement with investors in bitcoin (BTC) and bitcoin cash (BCH). According to the attorney, the refund benefited more than 13,000 rehabilitation creditors as of July 16.

Mt. Gox was once the largest crypto exchange globally and handled more than 70% of Bitcoin’s global transactions at the time. When the Tokyo-based exchange collapsed in 2014, the price of Bitcoin nearly dropped to zero. The recent refund transfers have raised concerns in the crypto community about the potential mass selling by creditors who have been waiting for years. These liquidations come after the government of Germany sold millions of dollars, causing a temporary drop in the BTC price.

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