After ten long years, the creditors of the Mt. Gox hack have finally received significant relief. Dave Ripley, CEO of Kraken, announced that kraken
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has successfully distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate to the affected creditors. Ripley highlighted Kraken’s role over the past decade in helping to investigate and return these funds, calling it both a privilege and a responsibility.
Ripley noted that legal issues caused delays in the payments but praised the Trustee for keeping most of the Bitcoin safe and preserving its value. This effort has been greatly appreciated by the creditors.
As Kraken nears its 13th anniversary, Ripley reflected on the company’s mission and its commitment to clients, honoring co-founder Jesse Powell for his influential role in the crypto industry. These milestones highlight Kraken’s dedication to both its clients and the wider crypto community.
The Collapse of Mt. Gox: A Historical Overview
The collapse of Mt. Gox in 2014 was a key event in cryptocurrency history. At the time, it was the largest Bitcoin exchange and lost 850,000 Bitcoin to hackers, which would be worth about $56 billion today. Kraken, along with four other exchanges—Bitstamp, SBI VC Trade, Bitbank, and Coincheck—was chosen to help return the funds to around 127,000 affected customers.
The total amount owed to these customers is estimated to exceed $7 billion, covering various cryptocurrencies and cash.
Here’s How It’s Going
Recent updates show significant progress in the Mt. Gox rehabilitation plan, which was approved in 2021. This plan aims to repay affected customers about 90% of their owed amounts.
According to Blockchain analysis firm Arkham Intelligence, 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 around 85,234 Bitcoin, valued at roughly $5.7 billion. This movement is a key step in resolving the long-standing issues faced by former Mt. Gox customers.
Potential Market Impact
The upcoming distribution of nearly $9 billion worth of BTC and BCH has raised concerns among digital asset investors. Many are wondering how much of these assets creditors will sell on the open market, potentially affecting the significant price gains seen over the past decade. Historically, crypto prices have often fallen in response to news about Mt. Gox-related blockchain transfers.
Earlier today, Bitcoin’s price fell to about $66,000 after $2.8 billion worth of assets, including $130 million in BTC, were moved to Bitstamp from Mt. Gox wallets. This move hints at the upcoming distribution to creditors and its possible impact on the market.
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What do you think will happen to Bitcoin’s price once the full distribution takes place? Food for thought!
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