Mt. Gox creditors report Bitcoin balances on Kraken

Kraken began distributing Bitcoins received from the Mt. Gox Trustee on July 16.

Creditors of defunct Bitcoin (BTC) exchange Mt. Gox have reported seeing crypto balances on the Kraken platform as affected users see relief 10 years after a historic hack. The news was confirmed on Reddit via a subreddit called “mtgoxinsolvency.”

Several users believed to be Mt. Gox’s beneficiaries have been seen confirming the update, with some also reporting receiving Bitcoin Cash (BCH) tokens.

Kraken had promised to distribute funds to creditors within seven to 14 days, according to Crypto.news. This comes after Mt. Gox transferred nearly $6 billion worth of crypto to multiple addresses. Users have also recorded “brute force” attacks on accounts, suggesting malicious actors are attempting to steal charity assets.

On July 23, Arkham also noted that the bankrupt BTC exchange sent $2.85 to four Bitstamp wallets. On-chain data showed transfers of 1598 BTC ($106.3 million), 382.4 BTC ($25.4 million), 2239 BTC ($149.1 million), and 890.9 BTC ($59.3 million), respectively. It’s unknown whether Bitstamp will stick to the same two-week distribution window as Kraken.

UPDATE: MT.GOX MOVES $2.85B BTC

Mt. Gox moved a total of $2.85 billion worth of BTC to new wallets this morning, with the aim of distributing 5,110 BTC ($340.1 million) to four separate Bitstamp addresses.

Bitstamp is one of five exchanges that Mt. Gox Trustee is working with to refund Mt. Gox. pic.twitter.com/KsKuxMpvZS

— Arkham (@ArkhamIntel) July 23, 2024

Will Mt. Gox creditors sell their Bitcoin?

Mt. Gox, based in Shibuya, Tokyo, was hacked six times between 2011 and 2014, with hackers stealing more than 850,000 BTC. The incident remains one of the largest crypto hacks in history, with the proceeds now valued at more than $60 billion.

We owe at least $9 billion to creditors, and market watchers have mixed views on whether creditors will sell. If users decide to sell their BTC tokens, BTC could face selling pressure. As of this writing, the token is down 2.3%, costing around $65,800 per token.

BTC daily price chart | Source: crypto.news