Kraken Restores Bitcoin to Mt. Gox Customers a Decade After Cyberattack
Kraken has announced the successful distribution of Bitcoin and Bitcoin Cash to customers affected by the Mt. Gox hack a decade ago. CEO Dave Ripley expressed the company’s privilege and duty in facilitating the return of client funds, as chosen by the Trustee almost ten years ago.
The exact amount returned to Mt. Gox customers by Kraken remains undisclosed at this time. The resolution of this issue marks one of the final chapters in the long-running Mt. Gox saga, which has been ongoing for years.
As part of the efforts to compensate Mt. Gox users, Kraken was one of five entities entrusted with the responsibility of returning customer funds to the numerous creditors impacted by the exchange’s collapse in 2014.
The creditors, awaiting over $7 billion in Bitcoin, Bitcoin Cash, and cash distributions, are relying on various exchanges, including Bitstamp, SBI VC Trade, Bitbank, and Coincheck, to fulfill their obligations. The timeline for the distribution of funds from these exchanges remains uncertain.
Arkham Intelligence reported that Mt. Gox has initiated the transfer of $2.85 billion worth of Bitcoin to new wallets, with a significant portion directed to Bitstamp. The Mt. Gox estate still retains 85,234 BTC valued at $5.7 billion.
While some customers have received their Bitcoin, Japanese law enforcement managed to recover only a fraction of the stolen assets to repay creditors. A rehabilitation proposal approved in 2021 aimed to reimburse about 90% of the owed assets to affected customers.
Once the largest crypto exchange globally, Mt. Gox faced bankruptcy in 2014 after hackers stole 850,000 Bitcoin, amounting to $56 billion at current market rates. The resolution of this long-standing issue brings closure to a significant chapter in the history of cryptocurrency exchanges.
