Kraken Begins Distribution of Bitcoin and Bitcoin Cash to Mt. Gox Creditors - BTC Under Fire
As confirmed by several creditors, Mt. Gox has initiated the disbursement of Bitcoin and Bitcoin Cash through the Kraken exchange.
Kraken has started distributing Bitcoin and Bitcoin Cash to Mt. Gox creditors - BTC under fire. Photo: CryptoSlate
Amidst signs of a crypto market recovery buoyed by the Bitcoin ETF surge, the "ghost" of Mt. Gox has unexpectedly returned. After a prolonged wait, Kraken has begun distributing Bitcoin (BTC) and Bitcoin Cash (BCH) to Mt. Gox creditors.
Just In: A large number of community users said they have received the Bitcoin returned by MtGox on Kraken. Bitstamp users said they have not received it yet. Earlier, Kraken said it had successfully received creditor funds from the Mt Gox trustee and estimated that it would take…
— Wu Blockchain (@WuBlockchain) July 23, 2024
Some users have confirmed receiving funds. The distribution marks the end of a 10-year wait for some initial investors who had once lost hope with the world's largest BTC exchange.
A Kraken spokesperson later confirmed completing the allocation process of Bitcoin received from Mt. Gox to users.
Kraken started distributing Gox coins pic.twitter.com/cOxXQaC5p0
— punch (@Punch0x1) July 23, 2024
https://x.com/DavidLRipley/status/1815880303254323603Mt. Gox had announced plans to refund nearly $9 billion in Bitcoin to creditors on July 5. Kraken was entrusted to disburse nearly $3 billion in BTC from this amount. As of last week, Kraken had received 48,641 BTC as previously stipulated to fulfill its obligations from the Mt. Gox Rehabilitation Trustee. At that time, Kraken anticipated the reimbursement process to occur within one to two weeks.
The most recent transfer by Mt. Gox was yesterday, July 22, when the exchange transferred 42,587.49 BTC, approximately $2.8 billion, to a separate wallet. Overall, these transactions are predicted to be within the framework of Mt. Gox's debt repayment.
In addition to Kraken, another exchange, Bitstamp, has also confirmed working with Mt. Gox to refund customers.
Notably, Bitcoin has begun to "feel the heat" from today's news. Compared to the last 24 hours, BTC has dropped nearly 3% and is trading at $65,852 per coin. The market capitalization of the king coin currently stands at $1.3 trillion.
To all Bitstamp customers who are Mt. Gox creditors: We're in touch with the trustee and working diligently to distribute assets as soon as possible. Once finalized, we'll reach out with the distribution date and next steps. Thank you for your patience and trust.
— Bitstamp (@Bitstamp) July 19, 2024
1-hour chart of BTC/USDT pair on Binance at 09:45 AM on July 24, 2024
Meanwhile, Bitcoin Cash (BCH) has been hit harder. The price of this coin has dropped by 6% during the day and is trading around $366.6.
1-hour chart of BCH/USDT pair on Binance at 09:45 AM on July 24, 2024
However, some argue that Kraken releasing up to $3 billion worth of Bitcoin from Mt. Gox into the market, causing only a 1-3% fluctuation in BTC price, truly signals the market's resilience, considering the longstanding fears of Mt. Gox sell-offs over the years.
A third of all Mt Gox BTC became available to trade on Kraken yesterday. Since that moment, the price is up almost 1% percent. This was one of the most feared supply overhangs in Bitcoin history, apparently turning out to be no big deal. Wild.
— DeFi^2 (@DefiSquared) July 24, 2024
In other developments, the U.S. government also made a move yesterday by transferring BTC to the market. Specifically, 58,742 BTC was deposited into Coinbase Prime. This is the amount of Bitcoin seized by the U.S. government from illegal drug trafficking on the Silk Road black market.
