- Kraken distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate to creditors, ending a decade-long wait.
- The Mt. Gox hack in 2014 resulted in the loss of 850,000 Bitcoin, worth $56 billion today.
- The rehabilitation plan aims to repay creditors about 90% of their due amounts, with $2.85 billion in Bitcoin already transferred.
After a decade of anticipation, creditors of the Mt. Gox hack are finally seeing some relief. Dave Ripley, CEO of Kraken, confirmed that the exchange has successfully distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate to the affected creditors.
Ripley pointed out that legal complications had delayed the payments. However, he praised the Trustee’s efforts in maintaining the security and value of Bitcoin. This effort has been highly appreciated by the creditors, who have been waiting for their funds since the collapse of Mt. Gox in 2014.
Mt. Gox’s collapse was a turning event in digital currency history. The exchange lost 850,000 Bitcoin due to hacking, generating huge panic and financial loss. Today, the stolen Bitcoin would be worth around $56 billion.
Kraken, along with Bitstamp, SBI VC Trade, Bitbank, and Coincheck, were chosen to assist with the reparation process for about 127,000 clients. The total amount due exceeds $7 billion, which includes multiple cryptocurrencies and cash.
Recent updates indicate significant progress in the rehabilitation plan approved in 2021. The plan aims to repay creditors approximately 90% of their due amounts. Blockchain analysis firm Arkham Intelligence reported that Mt. Gox has initiated the transfer of $2.85 billion worth of Bitcoin to new digital wallets, with $340 million already sent to Bitstamp-linked addresses. The Mt. Gox estate still holds about 85,234 Bitcoin, valued at around $5.7 billion.
The distribution of nearly $9 billion in Bitcoin and Bitcoin Cash has stirred concerns among digital asset investors. Many are speculating on the potential market impact as creditors may sell their assets to benefit from the substantial price appreciation over the past decade. Historically, the market has reacted negatively to Mt. Gox-related blockchain transfers, causing fluctuations in cryptocurrency prices.
The distribution of funds marks a significant step in resolving the issues faced by former Mt. Gox customers. This milestone underscores Kraken’s commitment and highlights the progress in addressing one of the most significant events in cryptocurrency history.
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The post Mt. Gox Creditors Finally Receive Bitcoin Payouts After a Decade-Long Legal Battle appeared first on Crypto News Land.
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